Welcome » IT Booklets » E-Banking » Risk Management of E-Banking Activities » Board and Management Oversight » Cost-Benefit Analysis and Risk Assessment
Financial institutions should base any decision to implement e-banking products and services on a thorough analysis of the costs and benefits associated with such action. Some of the reasons institutions offer e-banking services include:
The individuals conducting the cost-benefit analysis should clearly understand the risks associated with e-banking so that cost considerations fully incorporate appropriate risk mitigation controls. Without such expertise, the cost-benefit analysis will most likely underestimate the time and resources needed to properly oversee e-banking activities, particularly the level of technical expertise needed to provide competent oversight of in-house or outsourced activities. In addition to the obvious costs for personnel, hardware, software, and communications, the analysis should also consider: