Safety in the banks is a crucial aspect which includes the analysis of the different aspects that threaten peace and the identification of specific strategies that can be implemented to ensure a functional banking unit. The need for a functional banking unit can be emphasized by the evidence of the financial and economic crisis which hit the world in 2008. The latter saw collapsed businesses, increased unemployment, and a reduction in the demand for goods, which pushed organizations to a brick of collapse. There needs to be more emphasis that can be made on the importance of risk management, but Trust and safety provide some of the strategies which banks can use to ensure safety in the online world. As emphasized by Trust and Safety, one of the most effective strategies for managing risk is taking proactive approaches to avoid instances that can lead to compromised safety.
Banks need to ensure responsibility for managing risks, which is both a strategy for safety and a return to the shareholders. There is a need to identify effective strategies for a safer banking experience in online and banks’ physical security. Safety and Trust identify the need for cybercriminal detection methods and other modern technologies to make banking safer and limit the risks. In identifying different ways for risk mitigation, banks need to identify some of the common risks for banks, including operational risk, security risk, reputational risk, and legal risk.
Operational Risk
Operational risk is identified as one of the most common risks for banks. It can include instances like incorrect transaction processing, unauthorized access, compromise of user data, and non-enforceability of contracts, among other risks. In the online banking system, Safety and Trust urge banks to employ effective strategies for identifying hacking activities, employee fraud, and negligence.
Security Risks
Another risk in which safety and Trust urge banks to look out for a safe experience in banking is the security threat associated with the confidentiality of transactions. The online banking experience significantly exposes banks to security threats since the information is not stored in physical locations whose security can be ensured but in the clouds in the hands of hackers and other abusers. The most effective strategy for increased security is through policy enforcement which can ensure a safe and exceptional customer experience.
The system architecture and design
The online banking system is a complex process that demands the management of operational and security threats through implementing an effective system architecture for different risks. One of the most important considerations is the technology question for the design and updates because of the risk of inadequate control. Online banking security is a major consideration in the design of the platforms and banking applications; the online banking experience exposes banks and other individuals to various risks that can lead to investment losses.
The Reputational Risk
In a business organization with options and alternatives, especially on money and finance, reputation becomes a major consideration that can range from proper application functioning to security and other factors like access. Safety and Trust propose that banks implement different strategies for ensuring proper functioning in online banking, which can include an identification of potential risks and the different policies affecting business and interaction. The communication issue can also be a major contributor to reputational risk. Online and safety provide an overview of the advantages of effective communication, especially in preventing reputational risks associated with exposure to the online banking experience.
It is important for the identification of potential risks for banks in the online experience, which calls for the implementation of different strategies for security before the occurrence of a potential exploit. In a list of many possible risks, cybercrime is at an all-time high which requires the identification and implementation of effective strategies to counter the attacks. Safety and Trust explain cybercrime threats to look out for, including malware and phishing.
Malware- Malware is mainly used to break into smartphones or other devices to steal user data that could be used to perform unauthorized transactions or other manipulative attacks. Malware emphasizes using spyware and other malicious software to get personal information. Another malware threat is ransomware which can be used to lock files by the attacker until some conditions are met and can have severe implications on financial software or make online banking a nightmare.
Phishing is an attack where the attacker uses fraud and other manipulative strategies to get personal information about an individual, which can be used to launch an attack. In a phishing attack, the attacker uses imposing techniques pretending to be another person asking for personal information. In most cases, phishing attacks use the email platform, a call, or a message, and the attacker provides reasons that sound plausible regarding the need for the requested information.
