Page 136 - DMGT303_BANKING_AND_INSURANCE

Unit 6: New Age Clearing and New Age Payment

Self Assessment Notes

Fill in the blanks:
11. ______ handles approximately 220.1 million messages per month, average daily traffic
9081423 messages on global basis.

12. These are other Euro clearing systems, with ________ plus, being a German hybrid clearing
system and operating as an European oriented real time gross settlement and payment
system. RTGS plus, has over 60 participants.
13. The _______, with a membership of over 70 banks, in all EU member countries, works as
a netting system with focus on cross border Euro payments.
14. Trans-European Automated Real-Time Gross Settlement Express Transfer system is an
_______ payment system comprising 15 national RTGS systems working in Europe.

15. SWIFT is a Cooperative Society registered in May 1973 in Brussels, _______.

Case Study COBIT Case Study: Society for Worldwide Interbank
Financial Telecommunication (SWIFT)

Abstract
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) used COBIT
in an audit of its customer support centers located in the Netherlands, Singapore and
United States. This was a 16 person-week audit effort.
Background

SWIFT is a Belgium-based cooperative owned by 3,000 banks for secure interbank financial
messaging services and interface software. SWIFT's global network handles approximately
3.5 million messages daily with an average daily transaction total of several trillion US
dollars.
The SWIFT customer support function had recently been re-engineered and new tools and
processes were put in place. The audit plan provided room for auditing tools and processes.
COBIT had been used to audit the processes, but not the tools.

Process
At first management's reaction to the COBIT IT governance and control model was rather
negative because of timing. But auditees often think that audits come at a bad time. During
the audit, though, this attitude was reversed and the approach became well-accepted. This
change was confirmed by senior management after they received the draft audit report.
Managers were particularly impressed by the process orientation that was used instead of
the traditional way of focusing on confidentiality/integrity/availability. The most
apparent outcome of the COBIT approach is the logical set-up and sequence of interviews
which make the process more efficient because auditors build their knowledge in an
appropriate order.

It had taken lengthy discussions to obtain senior and line management approval of the
audit scope because the COBIT framework was leading an investigation into previously
untapped areas. Managers questioned the audit team's ability to perform an objective
Contd....

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