Bank Solutions Disaster Recovery and Business Continuity: A Case Study for CSIA 485

Bank Solutions Disaster Recovery and Business
Continuity: A Case Study for CSIA 485

Disaster Recovery and Business Continuity (DR/BC) planning is an issue that students will likely come in contact with as they
enter industry. Many different fields require this knowledge, whether employees are advising a company implementing a new
DR/BC program, auditing a company’s existing program, or implementing and/or serving as a key participant in a company
program. Often times in the classroom it is difficult to find real world practice for students to apply the theories taught. The
information in this case provides students with real world data to practice what they would do if they were on an engagement
team evaluating a DR/BC plan. Providing students with this opportunity better prepares them for one of the jobs they could
perform after graduation.
Keywords: Case study, Computer security, Critical thinking, Experiential learning & education, Information assurance and
security, Role-play, Security, Team projects 2. CASE TEXT
2. 1 Company Background
Bank Solutions, Inc. (a pseudonym), founded in 1973 by the
First Presidential Bank, a major bank of its time, is a
provider of item processing servicesi to community banks,
savings and loan associations, Internet banks, and small- to
mid-size credit unions. It offers a full range of services,
including in-clearing and Proof of Deposit (POD) processing,
item capture, return and exception item processing, image
archive storage and retrieval, and customer statement
rendering.
Bank Solutions was formed in 1973 when the Chief
Operating Officer of First Presidential Bank, a major
commercial bank, recognized an opportunity. Since item
processing functions are standardized (they have to be in
order for originating and receiving financial institutions to
clear customer transactions) and scalable with increases in
item processing volumes, they were able to offer these
services to other financial institutions wishing to reduce
operating expense and focus on growth strategies and other
core business functions. First Presidential marketed these
services under the Bank Solutions brand name.
Over the next 15 years, Bank Solutions enjoyed modest
growth. By 1988, it served 41 small- to mid-size financial
institutions. It had not, however, developed a market
presence outside of the Northwestern Region of the United
States, as management had hoped.
This was primarily
because Bank Solutions was unable to compete with other
item-processing service providers that had developed
proprietary software systems considered “top of the line.”
To make matters worse, at the time almost one quarter of
Bank Solutions‟ client base was saving and loan associations
(saving and loans). As a result of the Savings and Loan
crisis, 60% of Bank Solutions‟ savings and loan customer
base failed over the six years spanning 1985–1991, thus
stunting the outsourcer‟s growth. The related slow down of
the financial services and real estate industries and the
recession of 1990–1991 presented further headwinds to the
growth objectives of First Presidential management.
In
1994, First Presidential sold off Bank Solutions.
Under new management, Bank Solutions thrived. Keys
to the company‟s renewed success included the following: The development of key strategic partnerships with
other industry participants, including data clearing
houses and financial institution core processing system
ii
outsourcers. The introduction of a new company culture that focused

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