Potential Risk and Loss of Online Banking with Smartphone Applications. A FAIR Analysis

Essay from the year 2016 in the subject Computer Science - Internet, New Technologies, , language: English, abstract: The objective of this paper is to analyze the frequencies and magnitude of present and future losses associated with online banking systems applications.In today's dynamic and competitive environment, new and improved technology and innovations tend to shape our business and social environment. As the fast and emerging technological advancements continue to grow, they also pose a significant amount of risks when deployed to businesses and organizations. Impaired IT controls can have significant effects on the organizations' performance and profitability. Companies are now tasked to employ the latest and most modern technologies, or they risk losing business and market share.Similarly, consumers are not left to chance with the innovations. With the ease of access to the internet and mobile phones, individuals can now use these platforms and tools for making utility payments, banking, shopping and even budgeting. Given the increasing pace of expansion in the mobile finance sector, it will be more and more possible for individuals to conduct online banking using their smartphones. However, the rapid developments of these tools, devices, and their functionality concerning introducing m-commerce supporting technologies, will create new risks, including cyber criminal activities which are increasing by the day and worsened by economic challenges.To help control and manage these IT exposures, Freund & Jones (2015) developed a FAIR approach to aid businesses to measure and control information risks. The FAIR analysis, which stands for Factor Analysis of Information Risk, is an international standard quantitative method for handling operational risks and cyber security. This technique is mostly used to identify, understand, assess and measure information risk in meaningful financial contexts. It creates a basis for establishing an accurate model to information risk management. The power of FAIR is considerable, as it helps risk professionals to foster clarity and generate viable decisions from the ambiguous risky environment one was exposed to and basing judgment on useful measurements that yield quantifiable and defensible outcomes.