Royal Bank of Canada: Case Study

2362 Words Sep 27th, 2010 10 Pages
The Royal Bank of Canada experienced some fundamental managerial errors in May 2003. It was reported as a major “glitch” that had been caused by wrong configuration during the installation process. A simple problem had severely affected the lives of millions of people. In this essay I will discuss the security and control problems such as the simultaneous upgrade of both the main and back-up systems. This will lead into the strategies management could have used to prevent these problems happening in the first place and what they can do differently in future. I will also explain how management neglected the public relations side of the issue which had customers questioning the reliability and stability of Royal Bank of Canada ultimately …show more content…
It shows a lack of integrity and signs of incompetency when promises are not kept and policies are not adhered to. For example, the Royal Bank of Canada had assured that all systems and accounts would be normalised by Thursday, June 3rd. However, people were still experiencing difficulties with their accounts later in the week. The cumulative effect of its errors was widespread. Hundreds of thousands of other workers around Canada ran into similar delays or difficulties accessing their deposits. These people affected may have responded better to the delays had the main figure (George Nixon) of the Royal Bank of Canada been present to make the announcements.

Overall the Royal Bank of Canada dealt with the computer glitch reasonably well. It was fixed quickly and effectively. For most customers it was only a matter of not having their account figures displayed at their fingertips which they were so familiar with, and the minority who did struggle, such as a law firm executive assistant by the name of Andrea Mitchell, was forced to ask her employer for a cash advance to make up for her temporarily lost pay check. Following the announcement that the bank had resumed normal business practices, they began the process of clearing up any banking fee errors, and resolved discrepancies from service charges and overdraft interest. They indicated that all accounts should be reflected accurately in customers following statements. To do this accurately RBC hired Crawford
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