Risk of Financial Transaction Interruption
Response Measures Including Securing Alternative Worksites for ICT Workforce Distributed Deployment
[Asia Economy Reporter Kangwook Cho] As branches continue to close due to the spread of the novel coronavirus infection (COVID-19), commercial banks have entered an emergency response system to defend their headquarters. Measures have already been taken to disperse ICT personnel and secure alternative workplaces to respond to potential work disruptions if COVID-19 cases occur at the headquarters.
According to the financial sector on the 25th, Shinhan Bank has prepared alternative offices in Gangnam, Yeongdeungpo, Gwanggyo Baeknyeon-gwan, Ilsan in Gyeonggi Province, and Jukjeon in Yongin City to maintain the work of key personnel, including ICT, in case the headquarters is closed. In particular, at the data center in Jukjeon, Yongin City, a Business Continuity Plan (BCP) office has been established for special departments such as the Solution and Trading (S&T) Center, Foreign Exchange Support Department, Treasury Department, and Financial Settlement Department.
KB Kookmin Bank divided the headquarters departments, which are dispersed across four locations including the Yeouido headquarters, annex, Sewoo Building, and The-K Tower in Seoul, into work units and allocated workspaces by floor and building. Accordingly, if a specific floor needs to be closed due to an incident, employees can move to another floor, and if one building must be closed, they can relocate to another building to continue working.
Hana Bank has prepared alternative workplaces in three locations near Seoul and the metropolitan area?Cheongna Global Campus, Mangwoo-dong, and Seosomun?in preparation for headquarters closure. Additionally, they are securing one or two more workplaces in case the situation worsens. Headquarters employees are scheduled to work dispersed at alternative workplaces, and telecommuting will be implemented if necessary. IT staff are currently practicing separated work locations.
Woori Bank secured alternative offices at Woori Financial Namsan Tower and Seoul Training Center earlier this month and is ready to operate them in case the headquarters closes. They have also prepared to deploy substitute personnel if needed. NH Nonghyup Bank has set up an alternative workplace on the 3rd floor of the new building of its headquarters. The alternative workplace is normally restricted from access and is a space where essential personnel from each department work only during emergencies.
The bank headquarters serve as control towers where key personnel from each business department gather. Especially since the internal and external communication networks of the computer system are separated, sudden closure of the headquarters could lead to a critical situation such as suspension of financial transactions. Many branches have already closed, and small and medium-sized enterprises and small business owners who need financial support due to the COVID-19 crisis are struggling. According to the Financial Supervisory Service, as of the morning of the 24th, 29 financial company branches (banks, securities, insurance, savings banks, credit finance, and mutual finance) have been closed in the Daegu and Gyeongbuk regions where local infections began.
A financial sector official said, "Each bank is increasing limits to provide emergency support to affected companies and individual business owners, but as branch closures accelerate in the region, there is concern that support cannot even be received." He added, "Especially if the headquarters itself closes without countermeasures, all personnel in the headquarters must be quarantined, which could lead to a risk of financial transaction paralysis."
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