The Role of Social Systems Failure Risks and Control in the Digitization of Banking: A Case Study of Banking Failure in Ireland

John Organ, Larry Stapleton

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The digitization of banking has brought about significant advancements in the financial sector. However, as with any technology, digitized banking systems are not without risks. This paper examines the role of social systems failure risks and control in the digitization of banking using a case study of a banking failure in Ireland. Drawing on interviews and testimonials from a national parliamentary inquiry and analysis of relevant documents, the study identifies the social systems failure risks and control mechanisms that were in place prior and during the banking failure. The findings reveal that social systems failure risks, such as a lack of communications, insufficient training, and inadequate risk management, played a significant role in the banking failure. Moreover, the study highlights the importance of effective control mechanisms, such as robust risk assessment procedures and strong governance structures, in mitigating these risks.

Original languageEnglish
Title of host publicationIFAC-PapersOnLine
EditorsHideaki Ishii, Yoshio Ebihara, Jun-ichi Imura, Masaki Yamakita
PublisherElsevier B.V.
Pages9960-9965
Number of pages6
Edition2
ISBN (Electronic)9781713872344
DOIs
Publication statusPublished - 22 Nov 2023
Event22nd IFAC World Congress - Yokohama, Japan
Duration: 09 Jul 202314 Jul 2023

Publication series

NameIFAC-PapersOnLine
Number2
Volume56
ISSN (Electronic)2405-8963

Conference

Conference22nd IFAC World Congress
Country/TerritoryJapan
CityYokohama
Period09/07/202314/07/2023

Keywords

  • Banking
  • Digitization
  • FinTech
  • Information Systems
  • Risk

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