Banking · Core Banking Solutions
In the advanced operational framework of a Core Banking Solution (CBS), the concept of a centralized database architecture implies that all transactions occurring across various delivery channels are updated in real time at a central server. When a bank undergoes a technological migration from a legacy distributed system to a robust CBS environment, which of the following operational risks is primarily mitigated by the centralized nature of the database, specifically regarding the reconciliation of inter-branch transactions?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The risk of internet service provider downtime preventing the branch from accessing the central server for cash withdrawals.
- 2The risk of unauthorized physical access to the branch premises by external elements seeking to manipulate the local database.
- 3The risk of unreconciled entries in the inter-branch accounts since all branches operate on the same central general ledger.✓
- 4The risk of hardware failure at the local branch server leading to permanent loss of customer day-end transaction data.
Correct answer
The risk of unreconciled entries in the inter-branch accounts since all branches operate on the same central general ledger.
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