Title:
Principles of Risk Management
for Electronic Banking
Abstract: Competition among existing banking organizations
and new entrants have widen spread of banking products and services to become
accessible and delivered to retail and wholesale customers through an electronic
distribution channel collectively referred to as E-banking. Electronic banking
becomes more and more popular today, as banking via Internet. Without
a doubt, a substantial part of the future of banking business lies in a banking
environment that is less and less branch-based and where customers are able
to access banking services remotely. However, with the tremendous benefits
that E-banking offers, it also carries remarkable risks for the banking institutions.
In this paper, the ways to control risks for E-banking are presented. The
paper classifies the control risks for E-banking into 3 main categories,
which are Board and Management Oversight, Security Controls and Legal and
Reputation Risk Management. This approach is valuable to financial institution
customers, individuals or businesses who engaged to E-banking services.