Feeds

RBS must realise it's just an IT biz with a banking licence

Expert drills into what it'll take to prevent another bank technology fiasco

5 things you didn’t know about cloud backup

So. How can they stop that meltdown from happening again?

An ex-RBS worker told us that he feared that during the clear-up, the banking giant would plaster on more processes and more "risk management". And that seems to be what Stephen Hester has in mind - that's what he told the MPs, anyway:

The investigation will address the effectiveness of our risk management systems, including the identification of low probability/high impact events and their mitigation. It will also assess contingency planning and business resilience i.e. whether other systems within RBS Group are at risk of similar incidents.

But risk management at RBS is already unwieldy, and may in fact have contributed to the crisis, the former employee argued: "If you want to focus on the real problem that caused this it is the overly restrictive change control, as counter-intuitive as that may seem."

Our contact said in a move unrelated to the massive cock-up in July, RBS "management added another two layers of change control" - which are effective another rulebook of procedures to ensure updates to a system are formally agreed and rolled out as planned.

"I like to think I've been around the block, and I can safely say that the change management in RBS is the most complex I have ever come across - so much so I believe it is counter-productive," the source said.

That dissatisfaction with bundles of red tape was echoed by two other RBS workers who spoke to The Reg. Of course change management is an essential part of developing and maintaining an IT system, but an unwieldy rules designed by people not fully aware of the technical hurdles nor with an appreciation that the system is based on "quirky" mainframes of yore, combined with lower-skilled employees and bosses who weren't listening, seems to have created a situation where a problem, when it occurred, ballooned out of control.

Can they spare some change?

A spokesman for RBS told The Reg in response to our findings: "We're carrying out a full and detailed investigation into the causes of the incident. We plan to share the findings of this and will be happy to comment further once this is published."

Banks will need to rethink the position of IT in their businesses, said Chan: "They can get it right, it's when they apply the squeeze in the wrong place that we get these problems."

And in the case of overhauling banking systems it may take someone with bottle, a lot of money and some serious longterm thinking: as a banking expert suggested, it would be like changing all four engines on a airplane mid-flight. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.