Mizuho Financial : Briefing material related to IT system failures (PDF/487KB)

Progress of the Business Improvement Plan

July 15, 2022

Mizuho Financial Group, Inc.

Mizuho Bank, Ltd.

1. Outline of the Business Improvement Plan

2

• By the end of June, IT and user departments have finished inspections and training concerning contingency plans for 30 main operations, including domestic/foreign exchange and market settlement and other. We conducted advanced inspections for the prevention of system failures and installed cameras in ATM booths and other, as planned. We also completed release for a large-scale development project that was scheduled for between April and June 2022.
• In and after July, we will deliberate more advanced measures to respond to system failures such as the introduction of a tool, as well as verifying the effectiveness, and dissemination of completed measures, and flexibly reviewing actions.

	 The specific details of initiatives (		) for the "prevention of system failures," "enhancement of system failure response capabilities," and "reforming corporate culture" are explained in
	the subsequent pages.
	Main measures for improvement		Actions taken by Mar-22	Progress (as of end of Jun-22)
		Recurrence prevention	Improvement related to	Completed inspecting and modifying systems regarding the direct causes of IT
		the location of system
		system failures.
			failures		（Actions have been taken for improvement continuously）
			Improvement related to	Completed inspecting and modifying systems by expanding the scope to locations
	Prevention of		similar locations		where similar events could occur
	system failures		Inspection of important	Completed inspecting and improving MINORI, foreign exchange settlement, and the	• Completed preventive maintenance for systems on shared platforms.
		Prevention	infrastructure platforms
		BOJ settlement systems to ensure that there is no significant failure risk
			Inspection of		Completed inspecting the limit management status for foreign exchange settlement	• Completed inspecting the limit management status for 16 operations
			applications		(1 operation and 4 systems)	and 13 systems for domestic and market settlement
							• Completed checking and tabletop exercises for contingency plans
		Customer support in which system
			concerning 21 operations including domestic exchange operations
						Completed checking and training concerning contingency plans for 9 operations
		and business contingency plans are	and other
		including foreign exchange settlement and market settlement operations and other
						• Completed checking and exercises for all target 30 operations were
		working in conjunction
	Enhancement of			done and will continue to take actions
	system failure	ATM specification changes and the	Completed releasing of change in specifications to prevent ATM cards and	（Have taken actions continuously to change specifications in order not
	response	bankbooks from being stuck and to introduce specifications to display information to
					to keep customers waiting in case of trouble）
	capabilities	enhancement of customer support	customers on statements
		capability		Completed preparations to install cameras with speakers in ATM booths	• Installed cameras with speakers in 632 ATM booths (about 30% of
						the total)
		Business operations based on on-	Visualized the operations and personnel required for the maintenance and operation	• Based on the developed framework, started operations and
						phases and secured personnel
		site feedback from IT departments	verifications based on the actual situation of frontline office; will
		Developed a framework to understand and verify the actual situation of frontline
						continue to take actions
		and appropriate personnel allocation	offices
	Governance	Enhancement of IT system risk	Reviewed management items and details in order to comprehend and analyze IT	• Developed a framework to advance system risk management
	system risks appropriately
						• Started full-fledged discussion about risk awareness and
						Started to take actions to enhance risk awareness to enrich in-depth discussions
		management		countermeasures against risks
			about countermeasures against risks
						Developed procedures and structures related to foreign exchange laws and	• Will further develop and enhance procedures and structures mainly
		Legal compliance		regulations. Conducted and expanded training for management and employees to	related to foreign exchange laws and regulations.
						further enhance overall legal compliance	• Started monitoring and training concerning the procedures.
	Personnel and	Reforming corporate culture		Started to take actions to improve business operations and communication	• Have promoted specific actions, including the review of business
	organizations		throughout the organizations sequentially	operations and communication measures, sequentially

2. Schedule

3

Prevention of system failures

of system	capabilities
Enhancement	failure response

Main measures for improvement	Until end of	Current status	From Jul-Sep 22		From Oct-Dec	From Jan-Mar	From
Mar-22	(from Apr-Jun 22)	22	23	Apr-23
	Maintenance deadline		Inspection completed		Will continue checking as	regular inspection.
			MINORI	Shared platform			(Are considering
			Foreign exchange	Other shared platforms and		Will continue	checking as
	Preventive maintenance			whether to add
Inspection of		settlement	(private cloud)	transaction channels		regular	inspection
			inspection targets)
		BOJ settlement
important
infrastructure
platforms			MINORI	MINORI (deposits/foreign exchange, etc.) and transaction channels (ATM)		Modification, etc.	Will
								continue
	Operation when a system failure		(Main HUB)					Modification,
		Foreign exchange		Transaction channels and market/external settlement	checking as
	occurs			etc.
		settlement					regular
			BOJ settlement				Overseas and others	inspection
	Re-examination of services that		Inspection completed
	have not yet been put into use
Inspection of	Limit management/
	Foreign exchange	Deposits, domestic exchange,	Will continue checking as	regular inspection	based on changes	in operations
operation volume & processing
applications		settlement	ATMs, and market/external settlement
deadlines
	Regular inspection based on				Deposits, domestic/foreign exchange, ATMs, and market/external	Taxes/public
	changes in operations					settlement		funds, and others
Customer support in which system and business	Foreign exchange	Deposits, domestic exchange,
settlement	Will continue to take	actions
ATMs, and market/external settlement
contingency plans are working in conjunction	Market (foreign
(JPY), taxes/public funds, and others
			currencies)
	Introduction of specifications that		Release completed		Will continue to work on improving specifications
	do not keep customers waiting
ATM
Installation of cameras with		Preparation for		Expanding incrementally	Completing at all
		Completed at 632 office				1,809
	speakers		installation completed
		(about 30%)				offices

Business operations based on on-site feedback from IT departments and appropriate personnel allocation

Governance	Enhancement of IT system risk management
	Legal compliance
Personnel and	Reforming corporate culture
organizations

Development of	Are conducting and continuing operations and verifications
operations and
structure
Have reviewed management items and operations	Are conducting and continuing operations and verifications
				Will
Have developed and enhanced procedures, structures,	Will conduct and verify compliance monitoring and training	continue to
take actions
and training programs
Are starting to implement and clarify measures (reviewing operations, developing	Will promote and continue measures
organizations, forming employees' working groups, etc.) and are developing
and utilize infrastructures
	infrastructures

3. Prevention of System Failures

4

important	platforms	Objective	Inspecting the risk of material
			failure risk of important
	infrastructure		systems
Inspectionof	Target	Systems that support
			operations that need
			continuous service, even in an
			emergency such as a disaster
			or a system failure (109
			systems)
			Inspection of important
applications	Objective	systems to ensure stable
operation
			(Inspecting the
			appropriateness of settings in
			light of any increase/decrease
			in transaction volume, etc.)
of		Systems that support
	settlement operations which
Inspection	Target
require the prompt activation
			of the contingency plan,
			assuming impact on
			customers, market
			transactions, etc.
			(27 systems)

Actions	Until end of Mar-22

	1. Maintenance deadline (Target: 109 systems)		 Inspection
	• Check the maintenance support expiration dates of system			completed
	equipment.
	• Clarify the risks related to equipment of which maintenance			(109 systems)
	support has expired and develop policies to address the risks.
details			 MINORI
2. Preventive maintenance (Target: 80 systems)		 Foreign
• Conduct replacement before a failure occurs or the			exchange
maintenance support expires (preventive maintenance), by			settlement
Inspection
expanding the inspection standards, detecting signs of		 BOJ settlement
errors, etc.
			(41 systems)
		 MINORI
	3. Operation when a system failure occurs			(Main HUB)
		 Foreign
	(Target: 87 systems)
	• Clarify policies to address failures of the infrastructure			exchange
	platforms in the case of a system failure (backup switching,			settlement
	etc.) by checking whether there is no problem or point to be
		 BOJ settlement
	improved in the operation of each equipment and function.
				(6 systems)
	1. Re-examination of MINORI services that
	have not yet been put into use			Inspection
	• Confirm that MINORI transaction services that have not yet
			completed
	been put into use can be properly processed using the
	latest data.
details	2. Limit management/operation volume &
processing deadlines
(Target: 17 systems in FY22 and 10 systems in FY23)
	• Appropriately control the threshold of the resource use rate		 Foreign
	and the risk of system processing time exceeding the
	operation deadlines by comprehending changes in the			exchange
	operation volume and system resource use rates.			settlement
Inspection	3. Regular inspection based on changes in
		(1 operation and
	operations
			4 systems)
	(Target: 17 systems in FY22 and 10 systems in FY23)
	User and IT departments shall regularly share the necessity of
	renewing running systems and the readiness of the contingency
	plan, etc., based on changes in operations in the future, and
	shall appropriately control risks.

Current status

(as of end of Jun-22)

(Will continue checking as regular

inspection)

• Completed inspections and replacement of systems on shared platforms (private cloud) (24 systems)

Will inspect other platform and channel

systems (15 systems)by Sep-22

• Currently inspecting MINORI (deposits, foreign exchange, etc.) (34 systems) (until Sep-22)

Will start inspections of other remaining 47 systems in Q2 sequentially (until Mar-23)

－

• Completed inspections of limit management status for 16 operations and 13 systems, including domestic and market settlement operations and others, that have significant impacts on customers

Will start regular inspection based on changes in operations from Q2 (until Mar-23)

4. Enhancement of System Failure Response Capabilities

5

Customer support in which system and business contingency plans are working in conjunction	TargetObjective
ATM specification change and the enhancement of customer support capability	TargetObjective

	Actions		Until end of Mar-22	Current status
		(as of end of Jun-22)
		1. Visualize the system configuration and
			operation flows and reconfirm the impact of		 Completed confirmation of the
			system failures on customers
IT and user departments working				contingency plan and tabletop
	• Visualize data and operation flows from systems to service
in collaboration to ensure prompt			exercises assuming the event of
		provision to customers, utilizing system configuration
customer support in the event of	details		diagrams and data maps, etc., and reconfirm the scope and		a system failure for other
system failure		details of the impact of a system failure.	 Foreign exchange	remaining 21 operations,
			including domestic exchange
	Inspection			settlement	operations
Settlement operations that require		provision deadlines and confirm the series of response flow,	(9 operations)
	• Internal communication structure in the
		2. Confirm the contingency plan, considering	 Market (foreign
			service provision deadlines	currencies)	- Checked the following items as well as the
		• Both IT and user departments shall understand service	inspection details in the column at left
the prompt activation of the			including the deadline of contingency plan activation, etc.		event of a system failure being detected
				• Data, procedures, methods of informing
contingency plan, assuming
impact on customers and market		3. Ensure prompt customer support in the		customers, etc., that are required when a
		contingency plan is activated
transactions, etc.
		event of a failure through the above and via
(30 main operations)				Will continue to take these
		training in collaboration between IT and user
				actions regularly
			departments
Developing functions and		1. Introduce specifications that do not keep
		customers waiting
structures that enable us to		• Change specifications to prevent ATM cards and bankbooks
promptly provide information and		 Release	(Will continue to work on improving
support to customers, without	details		from becoming captured so as not to keep customers	completed	specifications)
	waiting in case of trouble.
keeping them waiting, in the event
of an ATM system failure, etc.		• Introduce specifications to display information to customers
	Inspection		on the ATM screen and in statements.
	2.	Enhance customer support capabilities in		 Installed cameras with speakers
Mizuho Bank ATM		 Preparation for	at 632 offices (about 30% of the
		case of trouble
(1,809 offices)			installation	total)
	• Install cameras with speakers in ATM booths so as to
*As of end of June-22		completed	Will increase the number of
			promptly provide customer support in case of trouble.
					ATM booths having cameras
					with speaker (until March 2023)