Information Security Risk in Financial Institutions

The history of technology and banking is examined as it relates to risk and technological determinism. It is proposed that the services that banks offer are determined by technology and that banks must adopt new technologies to be competitive. The adoption of technologies paradoxically forces the adoption of other new technologies to protect the bank from the increased risk of technology. This cycle will lead to bank examiners and regulators to focus on human behavior, not on the ever changing technology.

Authors:

• James A. Nelson

Keywords:

• Banking
• information security
• risk
• technologicaldeterminism.

References:

[1] D. Chandler, "Engagement with media: Shaping and being shaped,"
Computer-Mediated Communication Magazine, February, 1996.
Available: http://www.december.com/cmc/mag/1996/feb/chandler.html
[2] James A. Nelson, "A technologically determined model of the financial
services industry," presented at the 1986 Western Academy of
Management, Reno, NV.
[3] FDIC, 2005