104.Second, there is growing awaren

104.Second, there is growing awareness of operational risk, especially given the increasing reliance on information technology (IT).46 Breakdowns of IT systems as well as deficiencies in other operational areas can lead to large losses, an erosion of public confidence and possibly insolvency. The supervisor must require the bank to address the systemic/operational deficiency promptly, and in many cases urgently. However, a lasting solution requires that the bank deal with the underlying deficiencies, eg the inadequacy of backup systems.