General Studies · Banking and Information Technology
In a Core Banking Solution (CBS) implementation, which of the following describes the most critical operational risk associated with the 'Direct Changeover' (or Big Bang) migration method, where the legacy system is completely replaced overnight across all branches?
- 1The risk of immediate regulatory penalties regarding the physical preservation of old ledger papers.
- 2The risk of customer dissatisfaction arising from the slow processing speed during parallel runs.
- 3The risk of complete operational shutdown if the new system encounters a critical failure with no fallback option.✓
- 4The operational cost burden of running and reconciling two databases simultaneously for a long period.
Correct answer
The risk of complete operational shutdown if the new system encounters a critical failure with no fallback option.
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