A new era in the risk management of financial firms

Avcı, Süreyya Burcu (2020) A new era in the risk management of financial firms. In: Walker, Thomas and Gramlich, Dieter and Bitar, Mohammad and Fardnia, Pedram, (eds.) Ecological, Societal, and Technological Risks and the Financial Sector. Palgrave Studies in Sustainable Business In Association with Future Earth. Palgrave Macmillan, Switzerland, pp. 389-417. ISBN 978-3-030-38857-7 (Print) 978-3-030-38858-4 (Online)

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This contribution analyzes how new technology has changed the risk management landscape for financial companies. Accelerating technological innovations in the finance industry have disrupted the old order and created new challenges and opportunities along with new front-runners and followers. New payment systems, digital currencies, and digital investments are just some examples of these innovations. Formerly self-sufficient financial companies had to collaborate with FinTech companies in order to protect market shares. Technological innovations and collaborations among companies in the finance sector do not create new risks; rather, they increase the affectedness to some risks types and extend the definition of traditional risks, such as operational, reputational, and legal risks. E-financing activities, outsourcing in financial companies, and cyber threats are the major new risk sources that financial companies must embed to traditional risks. Risk management principles in the digitalization era guide the risk manager to tailor specific practices for each finance company.
Item Type: Book Section / Chapter
Divisions: Sabancı Business School
Depositing User: Süreyya Burcu Avcı
Date Deposited: 08 Aug 2023 17:15
Last Modified: 08 Aug 2023 17:15
URI: https://research.sabanciuniv.edu/id/eprint/47016

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