Operational crisis management and the influence of cyber - Threats and external fraud to business continuity planning in international banking industry

Abstract

The purpose of this study is to presents a comprehensive presentation of one of the most popular risks facing the international banking sector every day, the Operational Risk. This research consists of two parts, a thorough literature review and a survey. A the first part is studied the Operational risk management, operational risk factors, operational risk management in banking sector, categories of operational risk in banks, cyber threats and external fraud, operational risk and business continuity planning. At the second part of this master thesis follows a qualitative and quantitative analysis of the collected data. In the survey participated bank employees from different departments and position. The purpose of this survey is to interpreted and discussed to address the operational risk of cyber threats and external fraud in the banking industry to classify the impact of cyber threats and external fraud as factors for a crisis in the banking sector with a malfunction planning the continuation of activities. Another objective of this study is to identify the importance of operational risk assessment in the banking sector. The results of this research shows that the factors of people and processes affect the Operational Risk. Further, Cyber risk has strong negative linear relationship with Incompetence, on the other hand, External Fraud has no relation with Incompetence, low morale, high staff turnover. External Fraud has strong positive linear relationship with the factor Fraud which includes for example the hackers and with Money Laundering. From the results was presented a significant relationship between Operational Risk, External Fraud and Cyber Risk, with Business Continuity Planning which concludes that an Effective Business Continuity Planning can result a better addressing of the External Fraud and Cyber Risk that bank deals with.