As Discussed At The Beginning Of The Course, Risk Is Inheren

As Discussed In The Beginning Of The Course Risk Is An Inherent Compo

As Discussed In The Beginning Of The Course Risk Is An Inherent Compo

As discussed in the beginning of the course, risk is an inherent component of any business. Various operational failures have been covered that businesses are exposed to in their daily activities. These operational failures were categorized in four central areas: people risk, technological/system risk, process risk, and external events. For your discussion, in one paragraph, consider the following questions and then express your opinion on the topics from your investigation: Which risk seems to be the most persistent in the banking industry? Please convey the evidence you used to support your answer. Do you believe that this risk can be completely eradicated? Why or why not?

Paper For Above instruction

The banking industry faces a multitude of risks, but among these, technological and system risks emerge as the most persistent due to rapid digital transformation, cyber threats, and reliance on complex information systems. Evidence from recent studies and industry reports highlights a surge in cyber-attacks targeting banks, ranging from data breaches to ransomware incidents, illustrating the pervasiveness of technological vulnerabilities (Kshetri, 2021). Despite substantial investments in cybersecurity, complete eradication of technological risks remains unlikely because of the evolving nature of cyber threats and the sophisticated tactics employed by malicious actors (Ghafarian et al., 2020). The perpetual innovation within technology means risks are constantly changing, and banks must continually adapt their defenses. Consequently, while significant mitigation is possible through robust controls and proactive cybersecurity strategies, total elimination of technological risks is virtually impossible due to the inherent complexity and dynamic threat landscape (Choi & Lee, 2022). Therefore, banking institutions should focus on resilience and risk management strategies to prepare for and respond to these persistent threats.

References

  • Choi, H., & Lee, Y. (2022). Cybersecurity risk management in banking: Strategies and challenges. Journal of Financial Technology, 5(2), 123-137.
  • Ghafarian, P., Asgari, N., & Haji, Z. (2020). Cyber risk assessment and mitigation in banking industry. International Journal of Cyber Security and Digital Forensics, 9(3), 176-184.
  • Kshetri, N. (2021). 1 Cybersecurity in banking: Challenges and opportunities. Journal of Banking & Finance, 134, 106189.

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