Loading...
Emerging IT risks: Insights from German banking
Ashby, Simon Buck, Trevor Nöth-Zahn, Stephanie Peisl, Thomas
Ashby, Simon
Buck, Trevor
Nöth-Zahn, Stephanie
Peisl, Thomas
Citations
Altmetric:
Publication Type
Journal article with impact factor
Editor
Supervisor
Publication Year
2018
Journal
The Geneva Papers on Risk and Insurance - Issues and Practice
Book
Publication Volume
43
Publication Issue
2
Publication Begin page
180
Publication End page
207
Publication Number of pages
Collections
Abstract
How do German banks manage the emerging risks stemming from IT innovations such as cyber risk? With a focus on process, roles and responsibilities, field data from ten banks participating in the 2014 ECB stress test were collected by interviewing IT managers, risk managers and external experts. Current procedures for handling emerging risks in German banks were identified from the interviews and analysed, guided by the extant literature. A clear gap was found between enterprise risk management (ERM) as a general approach to risks threatening firms’ objectives and ERM’s neglect of emerging risks, such as those associated with IT innovations. The findings suggest that ERM should be extended towards the collection and sharing of knowledge to allow for an initial understanding and description of emerging risks, as opposed to the traditional ERM approach involving estimates of impact and probability. For example, as cyber risks emerge from an IT innovation, the focus may need to switch towards reducing uncertainty through knowledge acquisition. Since individual managers seldom possess all relevant knowledge of an IT innovation, various stakeholders may need to be involved to exploit their expertise.
Research Projects
Organizational Units
Journal Issue
Keywords
Cyber Risk, Emerging Risks, Enterprise Risk Management