Abstract:
Digital technology has changed the world of banking. Customers are able to transact 24 hours a day using various platforms, including mobile applications. It has introduced operational efficiencies and improved value propositions to customers and a variety of other stakeholders. However, it has brought risks such as cyber threats that have emerged as one of the top risks within the banking industry. These risks are more complex and difficult to manage, with greater financial impacts than before. Thus, the aim of this study was to understand the impact of digitisation on the management of risk in financial institutions, particularly banks.
This was a qualitative and exploratory study with 14 semi-structured interviews conducted with representatives of four South African banks, one international bank and an academic institution. The study found seven themes, revealing areas impacted by digitisation and how risk is managed.
This study aims to contribute towards the existing body of knowledge, particularly to South African academic literature, which is limited from a risk management lens as it relates to digitisation. Subsequently, a digital risk management competency model outlining the skills, knowledge and competencies required to effectively manage digital risk, is proposed for consideration.
