Impact of cybersecurity on risk mitigation strategy by commercial banks in emerging markets: A legal perspective case study

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Abstract

This study examined the impact of cyber security on risk mitigation strategy by commercial banks in the emerging market. The objectives included exploring the relationship between cyberspace and cyber threats, identifying the causes and challenges of these threats, and proposing solutions. A quantitative research approach was adopted, utilizing questionnaires for data collection from a sample of 25 respondents. Results indicated that major cyber risks included phishing, hacking, and internal accounting fraud (Johnson, 2016). Key challenges identified were inadequate oversight by managers, insufficient data encryption, reliance on third-party services, and lack of national standards and infrastructure, which hinder efforts to combat cyber threats (Alsayed & Bilgram, 2017). The study concluded that enhancing cyber security is crucial for Zimbabwean banks. Recommendations for NEWMAN Bank (NB) include implementing stringent monitoring of staff activities related to customer confidentiality, conducting regular cyber security audits, raising customer awareness, and adopting measures such as multifactor authentication, automatic logout features, and strong firewalls to mitigate cyber risks effectively.

Keywords: Cyber Security, Risk Mitigation, Commercial Banks

Authors’ individual contribution: Conceptualization — G.K. and N.W.; Methodology — G.K. and N.W.; Software — G.K. and N.W.; Validation — G.K. and N.W.; Formal Analysis — G.K. and N.W.; Investigation — G.K. and N.W.; Resources — G.K. and N.W.; Data Curation — G.K. and N.W.; Writing — Original Draft — G.K. and N.W.; Writing — Review & Editing G.K. and N.W.; Visualization — G.K. and N.W.; Supervision — G.K. and N.W.; Project Administration — G.K. and N.W.; Funding Acquisition — G.K. and N.W.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M41, M49

Received: 22.05.2024
Accepted: 09.01.2025
Published online: 14.01.2025

How to cite this paper: Kanyongo, G., & Wadesango, N. (2025). Impact of cybersecurity on risk mitigation strategy by commercial banks in emerging markets: A legal perspective case study. Corporate Law & Governance Review, 7(1), 28–37. https://doi.org/10.22495/clgrv7i1p3