Royal Bank of Canada: Case Study
The Royal Bank of Canada experienced some fundamental managerial errors in May 2003. It was reported as a major “glitch” that had been caused by wrong configuration during the installation process. A simple problem had severely affected the lives of millions of people. In this essay I will discuss the security and control problems such as the simultaneous upgrade of both the main and back-up systems. This will lead into the strategies management could have used to prevent these problems happening in the first place and what they can do differently in future. I will also explain how management neglected the public relations side of the issue which had customers questioning the reliability and stability of Royal Bank of Canada ultimately leading to disloyal customers. Finally this essay will argue how well Royal Bank of Canada responded to the computer software issue and what they should have done differently to prevent the problem and ease the situation once it had happened. From the errors and mistakes made from the Royal Bank of Canada, other banks and industries can learn how to avoid them. One such bank in Australia is St George, in depth I will discuss the risks of malfunction or abuse customers may experience when dealing with the information systems with reference to relevant case studies.
The Royal Bank of Canada was founded in 1864, and in just over a century had grown its total assets to over $413 Billion, had 60,000 employees and served 12 million customers. The Royal Bank of Canada set the benchmark in its industry and as you would expect was the first bank in Canada to install computer technology. On Monday, May 31, 2004 Royal Bank of Canada information technology staff made a programming upgrade which was designed to significantly improve the banking software. Unfortunately during the installation process, according to Martin Lippert, Royal Bank of Canada’s vice chairman, the glitch in the banks computer systems “was most likely caused by a single
The Royal Bank of Canada was founded in 1864, and in just over a century had grown its total assets to over $413 Billion, had 60,000 employees and served 12 million customers. The Royal Bank of Canada set the benchmark in its industry and as you would expect was the first bank in Canada to install computer technology. On Monday, May 31, 2004 Royal Bank of Canada information technology staff made a programming upgrade which was designed to significantly improve the banking software. Unfortunately during the installation process, according to Martin Lippert, Royal Bank of Canada’s vice chairman, the glitch in the banks computer systems “was most likely caused by a single
Bibliography: New York Times, June 7, 2004; 7) “RBC Admits Human Error, Scam Artists Act,” Ottawa Business Journal, June 10, 2004; 8) Lindsay Bruce, “RBC Glitch Still Not Ironed Out,” ITWorldCanada.com, June 7, 2004; 9) Chris Conrath, “Anatomy of a Snafu,” ITWorldCanada.com, June 11, 2004; 10) Paul Waldie, “RBC Calls in Help,” Globe and Mail, www.theglobeandmail.com , accessed June 19, 2004; 11) Mel Duvall, “RBC’s Account Imbalance,” Baseline Magazine, July 1, 2004; and CP, “RBC Still Making Up for Glitch,” London Free Press, www.canoe.ca , accessed June 19, 2004.