This blog is for my undergrad students taking MIS201 at IBA.
1. Advance reading of 2.1, 2.2 and 2.3
Write answer to related review questions in your folder (1 to 11)
Risks Associated With MISRisk reflects the potential, the likelihood, or the expectation of events thatcould adversely affect earnings or capital. Management uses MIS to help inthe assessment of risk within an institution. Management decisions basedupon ineffective, inaccurate, or incomplete MIS may increase risk in a numberof areas such as credit quality, liquidity, market/pricing, interest rate, or foreigncurrency. A flawed MIS causes operational risks and can adversely affect anorganization's monitoring of its fiduciary, consumer, fair lending, Bank SecrecyAct, or other compliance-related activities.Since management requires information to assess and monitor performance atall levels of the organization, MIS risk can extend to all levels of theManagement Information Systems 4 Comptroller's Handbookoperations. Additionally, poorly programmed or non-secure systems in whichdata can be manipulated and/or systems requiring ongoing repairs can easilydisrupt routine work flow and can lead to incorrect decisions or impairedplanning.Assessing Vulnerability To MIS RiskTo function effectively as an interacting, interrelated, and interdependentfeedback tool for management and staff, MIS must be "useable." The fiveelements of a useable MIS system are: timeliness, accuracy, consistency,completeness, and relevance. The usefulness of MIS is hindered wheneverone or more of these elements is compromised.TimelinessTo simplify prompt decision making, an institution's MIS should be capable ofproviding and distributing current information to appropriate users.Information systems should be designed to expedite reporting of information.The system should be able to quickly collect and edit data, summarize results,and be able to adjust and correct errors promptly.AccuracyA sound system of automated and manual internal controls must existthroughout all information systems processing activities. Information shouldreceive appropriate editing, balancing, and internal control checks. Acomprehensive internal and external audit program should be employed toensure the adequacy of internal controls.ConsistencyTo be reliable, data should be processed and compiled consistently anduniformly. Variations in how data is collected and reported can distortinformation and trend analysis. In addition, because data collection andreporting processes will change over time, management must establish soundprocedures to allow for systems changes. These procedures should be welldefined and documented, clearly communicated to appropriate employees,and should include an effective monitoring system.Comptroller's Handbook 5 Management Information SystemsCompletenessDecision makers need complete and pertinent information in a summarizedform. Reports should be designed to eliminate clutter and voluminous detail,thereby avoiding "information overload."RelevanceInformation provided to management must be relevant. Information that isinappropriate, unnecessary, or too detailed for effective decision making hasno value. MIS must be appropriate to support the management level using it.The relevance and level of detail provided through MIS systems directlycorrelate to what is needed by the board of directors, executive management,departmental or area mid-level managers, etc. in the performance of their jobs.
Nargis: whats this? please discuss.