With increasing digitalisation, banks and financial service providers are exposed to an increasing spate of risks. Cybersecurity threats are steadily rising. Data privacy authorities are ramping enforcement and the scope of sector-specific regulations are widening. In the financial services industry, many of these risks are heightened, adding significant complexity to risk management and cybersecurity preparedness within financial institutions.
Digitalisation changes the way we handle money
Today, risk management for banks is challenged by digitalisation more than in almost any other industry. It is true that new technologies have always determined the way financial institutions work. For example, the number of employees in the German banking industry has fallen continuously over the last two decades, while total assets have increased by roughly 50% in the same period, according to the Deutsche Bundesbank. This productivity boost has been made possible not least by the increased use of technology.
However, the results of technological change have never been as drastic as they are today, because they are now affecting and changing…
