Case Study: IBM Audit Defense for a Leading UAE Bank
Challenge
One of the largest banks in the UAE, renowned for its retail and corporate banking services, faced an IBM audit with claims totaling AED 45 million. The bank’s IT infrastructure was critical to its operations, supporting secure digital banking platforms, transaction systems, and customer relationship management. IBM’s audit findings cited sub-capacity licensing discrepancies, entitlement mismatches, and deployment overages across virtualized environments. Given the stringent regulatory environment and the need to maintain uninterrupted banking services, the bank engaged in Redress Compliance to mitigate financial risks and resolve the audit.
The Process
- Audit Review and Strategy: • Redress Compliance thoroughly analyzed IBM’s audit report, uncovering errors in licensing calculations and entitlement usage. • Examined historical agreements and deployment data to establish an accurate compliance baseline.
- Data Collection and Validation: • Collaborated with the bank’s IT and operations teams to collect detailed data from physical servers, virtualized environments, and cloud platforms. • Validated sub-capacity metrics, identifying significant overestimations in IBM’s claims. • Highlighted underutilized licenses and misconfigured setups that could be optimized to address gaps.
- Strategic Negotiations with IBM: • Presented IBM’s audit team with a revised compliance report, supported by accurate data and legal interpretations of licensing policies. • Highlighted the bank’s critical role in the UAE’s financial ecosystem and its proactive approach to compliance. • Secured major concessions from IBM, significantly reducing the financial liability.
- Compliance Optimization and Governance: • Reallocated unused licenses within the bank to close compliance gaps without additional purchases. • Implemented a compliance framework with real-time license tracking and automated monitoring tools. • Conducted training sessions for IT and procurement teams to enhance understanding of IBM licensing policies.
Outcome
Redress Compliance’s intervention reduced the bank’s financial liability by 96%, bringing the AED 45 million claim down to AED 1.8 million. This settlement covered the cost of additional licenses required for future scalability, with no penalties or retroactive fees imposed. The bank’s operations continued seamlessly throughout the audit, ensuring uninterrupted customer service. Enhanced compliance processes were implemented, reducing the risk of future audit challenges.
Quote from the CIO:
“The IBM audit presented a significant challenge, but Redress Compliance’s expertise turned it into an opportunity to strengthen our compliance framework. Their guidance saved us millions and ensured we could continue serving our customers without disruption. Their partnership was invaluable.”
Key Results:
- Initial Audit Claim: AED 45 million.
- Final Settlement: AED 1.8 million (96% reduction).
- Compliance Enhancements: Centralized license management and real-time monitoring tools.
- Business Continuity: Ensured uninterrupted banking operations during the audit process.
This case demonstrates Redress Compliance’s ability to deliver exceptional outcomes for financial institutions, safeguarding both financial stability and operational efficiency during IBM audits.
