As Discussed At The Beginning Of The Course, Risk Is 847517

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. First Post 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 is inherently exposed to multiple risks, but among these, technological or cyber risk stands out as the most persistent and significant. With the rapid evolution and integration of digital banking services, cyber threats such as data breaches, phishing attacks, and ransomware have become increasingly prevalent. Evidence from recent industry reports, such as those from the World Economic Forum and Deloitte, highlights that cyber incidents account for a majority of operational disruptions in banks worldwide, often resulting in financial losses and reputational damage (World Economic Forum, 2022; Deloitte, 2023). The persistent nature of technological risks can be attributed to the ever-advancing sophistication of cybercriminals, the complexity of banking IT systems, and the constant need for innovation to meet customer expectations. Complete eradication of this risk is virtually impossible because cyber threats continually evolve, exploiting new vulnerabilities as they emerge. Despite rigorous security measures and proactive risk management strategies, banking institutions cannot entirely eliminate the threat because cyber attackers are relentless and adapt quickly to security defenses (Böse et al., 2020). Consequently, the focus should be on strengthening cybersecurity measures, developing resilient systems, and fostering a culture of risk awareness to mitigate the impact of these persistent threats.

References

  • Böse, M., et al. (2020). Cybersecurity in banking: Challenges and solutions. Journal of Banking & Finance, 112, 105274.
  • Deloitte. (2023). 2023 Banking Industry Outlook: Navigating Cyber Risks. Deloitte Insights.
  • World Economic Forum. (2022). The Global Risks Report 2022. Geneva: WEF.
  • Harper, K., & Smith, J. (2021). Cybersecurity threats in financial services. Journal of Financial Crime, 28(2), 456-470.
  • Olsen, P., et al. (2019). Managing operational risk in banking. Financial Stability Review, 27, 123-135.
  • Shelton, D., & Turner, J. (2020). The impact of technological advancements on banking risk management. International Journal of Risk Assessment and Management, 23(1), 59-78.
  • Moore, T., & Lin, Y. (2021). AI and cybersecurity in the banking sector. Journal of Digital Innovation, 5(3), 112-129.
  • He, D., & Li, Z. (2022). External events and their impact on banking operations. Journal of Financial Regulation and Compliance, 30(4), 567-583.
  • Kim, S., & Patel, R. (2021). Process risks in financial institutions. Risk Management Journal, 43(2), 215-232.
  • Roberts, A., & Nguyen, T. (2020). Operational risks and strategic responses in banking. International Journal of Banking and Finance, 18(4), 89-105.

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