Question 1Nowadays, banks play an important role in our life today. We also cannot imagine our life without banking transactions. Imagine what would happen if the banks didn't work for a month? Almost all of our daily jobs would stop working. Or, what would happen if the stability, security and flexibility of the monitoring and financial system lost strength? To avoid these problems, central banks were created. For example: In 1913 the United States Congress created the Federal Reserve System to serve as the central bank of the United States. The purpose of creating central banks is to keep the government's monetary system stable and to ensure the continued integrity of the nation's payment system. Furthermore, central banks are created as lenders of last resort to the government. This means that central banks help financial insights during difficult economic times. They do this by giving low-rate loans or discounts under other programs to financial institutions until problems surface. As for the case of Standard Chartered Bank, the regulators of the Central Bank (The Monetary Authority of Singapore) can reduce the risk level by organizing some possible programs. By implementing the following actions, the Central Bank can mitigate risks. New regulations for using outsourcing activities Putting some restrictions on outsourcing activities Establishing a new department only for controlling outsourcing activitiesIn other words, l The Monetary Authority of Singapore should introduce some regulations, restrictions on the use of outsourcing business to avoid dealing with the problems that occurred between Standard Chartered Bank and Fuji Xerox. And it would be better if the central bank created a department to control outsourcing......middle of paper......problems arising from the following key issues: Bad security in Fuji Xerox server Negligence of Fuji Xerox and Standard Chartered Bank's regulators Bank customer data protection was not taken seriously Lack of experience from Fuji Xerox staffIn other words, both Standard Chartered Bank and Fuji Xerox made mistakes in that case . It can be seen that the security of the Fuji Xerox server was not so protected. The result is therefore the theft of privacy of 647 Standard Chartered Bank customers through the Fuji Xerox server by hackers. And this was the negligence of Fuji Xerox regulators. Protecting the privacy of banking customers has been one of the Bank's main tasks. However, the bank did not take it seriously and the bank regulators had to monitor the service provider and its risks emerging after using the outsourcing service.