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The Year 2000 - A Challenge for Financial Institutions and Bank Supervisors
Appendix C
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Building a successful Year 2000 program requires that a bank address a number of key factors and take appropriate steps to address them. These factors include:
- Top management understanding and endorsement as a strategic priority.
- Line management appreciation that it is not just a technical issue but potentially one of business survival.
- Explicit assignment of responsibility for the Year 2000 project and empowerment to carry it out.
- Detailed planning with the recognition that testing will be the most resource intensive part of the process.
- Appreciation that external testing may be among the most difficult parts of the process.
- Recognition that vendors and service providers cannot certify that their products will work properly with a bank's own applications, equipment, and operating environment.
- Proactive communication with external vendors and service providers, and correspondents and customers.
- Recognition that correspondents and customers pose credit and other risks and analysis of the risks posed.
- Prioritisation of applications as to their strategic importance.
- Identification of explicit resources to address the Year 2000 issue consistent with business priorities.
- Establishment of explicit target dates for milestones and regular reports to top management on progress.
- Active involvement of audit in the Year 2000 process.
- Clear contingency plans with trigger dates and procedures for implementation.
- Strong monitoring of security controls throughout the process.
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The Year 2000 - A Challenge for Financial Institutions and Bank Supervisors
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