
98 Operational Risk Control
must be integrated into a homogeneous reporting format. A business unit by business
unit reporting scheme by Barclays Bank, which is more qualitative than quantitative,
is shown in Table 5.2.
A king-size operational risk associated to IT is the maintenance of obsolete
applications software. Practically all financial institutions have in their library
applications which are 20–30 years old. These have to be maintained:
䊏 The maintenance of applications programs is labor-intensive and it is a highly
ineffective job.
䊏 Many banks are using up to 75% of their programming resources to maintain old
programs, which is absurd.
Because ...