Meaning Of Integrated Communication Network
A network or system that aids in the integration of all technology into one system is known as an integrated communication network. Banks benefit from this integration’s increased security and management. ICS is a piece of hardware, or a group of devices, that enables smooth interaction across communication protocols and interfaces.
EXAMPLE – The bank utilizes this system to gather information from its branches and handle it centrally. It records all transactions and examines all systems in the event of money laundering, among other things. Flipkart makes use of this technology in the same way that it accepts payments from banks, credit cards, and other sources.
Need of Integrated Network
WHY DO BANKS NEED INTEGRATED COMMUNICATION SYSTEM?
In its operations connected to the administration of cash, banking services, credit cards, and other e-banking products/services, banks are subject to a variety of hazards. which relate to the utilization of IT tools, channels, and platforms. Banks should have a solid and efficient control system in place to manage risks and concerns relating to IT similar to Swift Technology
SWIFT TECHNOLOGY – Banks utilize Swift technology to enhance or ensure the seamless functioning of transactions. For online transactions, SWIFT assists in sending codes to other banks in encrypted form.
Types Of Internal Control System
- Preventive Controls : Such a control prevents mistakes or abnormalities. Errors that occur when coding data or entering data from a source document are minimized or prevented by good design and screen layout.
- Access Control : Access helps the company and users by allowing access to computer media, computer components, data, documentation, etc. while restricting access to the computer room to only authorized individuals. It should not be permitted for unauthorized individuals to do repairs or maintenance on computer hardware.
- Detective Controls : Detection of mistakes or anomalies after they have already happened. For instance, a data entry validation algorithm can spot mistakes.
- Corrective Controls : When errors and irregularities are discovered, these measures eliminate or minimize their impact. The communication program (with built-in control) may ask for a re-transmission of information data if any data is corrupted during transmission.
- Physical Controls : Given the private and delicate data that is processed and stored in the data processing center, access control is crucial in a computerized environment.
- Accounting Controls : It could take the shape of (a) authorizations and dual controls (b) data validation checks (c) or other access controls to the software applications. The verification of each transaction against limits and balances, halt payments, post-dated and stale-dated checks, etc. are some additional controls.
- Operational Controls : Operational controls are built into the software, whereas access controls can be implemented at many levels by both system and application software. To guarantee data processing and integrity, operational controls are typically included in the application program. Tools like audit trails, checksums, and data encryption are employed to ensure operational controls.
- Internal Controls : A system of internal controls is integrated into the computerized systems to guarantee the accuracy and reliability of the accounting data and other sensitive customer information as well as to safeguard the bank’s assets. Effective internal control would help the bank management conduct the business of the bank in a more regulated manner.
- Output controls : According to the bank’s record maintenance policy, hard copies of all significant reports generated should be carefully stored. The computer room and data centers need to have their smoke detectors, fire extinguishers, and other equipment tested as part of disaster management.
- Information System Audit (IS) : With the aid of CAATTs and CMITTs, this audit is conducted through the use of IT systems. The information system audit is performed using these tools. The efficiency of several controls, such as preventative, investigative, and remedial controls, in securing banks’ information systems is covered by the information system audit. The bank’s information system’s strengths and weaknesses are evaluated via an information system audit.