Speaking on the Microsoft-CrowdStrike outage that occurred on July 19 and left millions across the globe without any technological assistance, disrupting important servicing the world over, RBI Governor Shaktikanta Das asked banks to stay cautious when dealing with technological support sourced by third-party companies.
“A recent global tech outage demonstrated how a minor change can wreck havoc on a global scale. It is necessary banks and financial institutions build risk management systems to control such IT issues to avoid outages that disrupt services,” Das stated.
Furthermore, the RBI Governor emphasised on the importance of building robust business continuity plans to help combat any technological glitches, while stating that dependance on third-party outsourcing comes with its risks, risk that can be avoided.
“It is important to have robust business continuity plans to deal with such global outages when outsourcing data from third-party firms,” Das stated.
