PRiM Risk Newsletter No 25: E-Risk
Whether in Internet banking, credit card clearing or electronic payments, electronic money is omnipresent today. It is easy to see how the conversion of money into digital form has increased the efficiency and the volumes of financial services. But the risks arising from the conversion of money into digitally processed information are certainly not to be dismissed. While credit card fraud and identity theft are certainly well known due to their coverage in the press, many other aspects of “E-Risk”, i.e., the risk arising from the use of digital media to conduct financial transactions, are less visible and often misunderstood. Although in most cases E-risk belongs to the category of operational risk, there are other elements, such as counterparty risk, reputational risk and liquidity risk that must also be considered.
Editor, PRiM Risk Newsletter