Wednesday, January 14, 2009

Preparing for the class on Saturday, 17 Jan 2009

1.  Advance reading of 2.1, 2.2 and 2.3

Write answer to related review questions in your folder (1 to 11)

2.  Read the blog for announcements and other articles… 
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2 comments:

  1. NargisJanuary 17, 2009 at 1:14 PM

    Risks Associated With MIS
    Risk reflects the potential, the likelihood, or the expectation of events that
    could adversely affect earnings or capital. Management uses MIS to help in
    the assessment of risk within an institution. Management decisions based
    upon ineffective, inaccurate, or incomplete MIS may increase risk in a number
    of areas such as credit quality, liquidity, market/pricing, interest rate, or foreign
    currency. A flawed MIS causes operational risks and can adversely affect an
    organization's monitoring of its fiduciary, consumer, fair lending, Bank Secrecy
    Act, or other compliance-related activities.
    Since management requires information to assess and monitor performance at
    all levels of the organization, MIS risk can extend to all levels of the
    Management Information Systems 4 Comptroller's Handbook
    operations. Additionally, poorly programmed or non-secure systems in which
    data can be manipulated and/or systems requiring ongoing repairs can easily
    disrupt routine work flow and can lead to incorrect decisions or impaired
    planning.
    Assessing Vulnerability To MIS Risk
    To function effectively as an interacting, interrelated, and interdependent
    feedback tool for management and staff, MIS must be "useable." The five
    elements of a useable MIS system are: timeliness, accuracy, consistency,
    completeness, and relevance. The usefulness of MIS is hindered whenever
    one or more of these elements is compromised.
    Timeliness
    To simplify prompt decision making, an institution's MIS should be capable of
    providing 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.
    Accuracy
    A sound system of automated and manual internal controls must exist
    throughout all information systems processing activities. Information should
    receive appropriate editing, balancing, and internal control checks. A
    comprehensive internal and external audit program should be employed to
    ensure the adequacy of internal controls.
    Consistency
    To be reliable, data should be processed and compiled consistently and
    uniformly. Variations in how data is collected and reported can distort
    information and trend analysis. In addition, because data collection and
    reporting processes will change over time, management must establish sound
    procedures to allow for systems changes. These procedures should be well
    defined and documented, clearly communicated to appropriate employees,
    and should include an effective monitoring system.
    Comptroller's Handbook 5 Management Information Systems
    Completeness
    Decision makers need complete and pertinent information in a summarized
    form. Reports should be designed to eliminate clutter and voluminous detail,
    thereby avoiding "information overload."
    Relevance
    Information provided to management must be relevant. Information that is
    inappropriate, unnecessary, or too detailed for effective decision making has
    no value. MIS must be appropriate to support the management level using it.
    The relevance and level of detail provided through MIS systems directly
    correlate to what is needed by the board of directors, executive management,
    departmental or area mid-level managers, etc. in the performance of their jobs.

    ReplyDelete
  2. Waseem ArainJanuary 19, 2009 at 2:07 PM

    Nargis: whats this? please discuss.

    ReplyDelete

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