DEVELOPMENT OF A CYBER SECURITY AUDITING FRAMEWORK (CSAF) TAILORED FOR THE BANKING

DEVELOPMENT OF A CYBER SECURITY AUDITING FRAMEWORK (CSAF) TAILORED FOR THE BANKING

Abstract

As the global banking sector increasingly relies on digital platforms and technologies, the paramount importance of robust cybersecurity measures cannot be overstated. This research endeavors to address this imperative by delineating the development and implementation of a specialized Cyber Security Auditing Framework (CSAF) purpose-built to fortify the defenses of financial institutions. Employing a multifaceted research methodology combining qualitative and quantitative approaches, this study unravels the intricate landscape of cybersecurity requirements within the banking industry. Through the judicious application of models such as the Entity Relation Model (ERM) and CSAF Process Model, a solid foundation for CSAF's construction emerges. Furthermore, the proposal of an innovative organizational structure fosters enhanced employee satisfaction and specialization within IT divisions, vital to the overarching goal of bolstering cybersecurity. The implementation and testing phases of CSAF reflect the crucible of this research effort. Seamless integration into the fabric of existing banking systems, coupled with tailored configurations catering to the specific needs of each institution, underscores the adaptability and relevance of CSAF. Rigorous testing regimes, encompassing unit and integration testing, user acceptance trials, and comprehensive security assessments, validate CSAF's potential in meeting its defined cybersecurity objectives. These findings shed light not only on the framework's efficacy but also on challenges encountered, including integration complexities and security vulnerabilities, necessitating proactive remediation efforts. As the banking sector marches forward, CSAF's continuous evolution, industry-wide cooperation, targeted training initiatives, and integration into regulatory compliance frameworks offer a potent strategy for safeguarding the integrity, confidentiality, and availability of critical financial data, thereby instilling unwavering trust in the digital age of banking.

DEVELOPMENT OF A CYBER SECURITY AUDITING FRAMEWORK (CSAF) TAILORED FOR THE BANKING 

CHAPTER ONE 

INTRODUCTION

1.1 Background of the Study

In today's digital age, the banking sector heavily relies on information technology systems to conduct various financial transactions and store sensitive customer data. However, with the increasing number of cyber threats and attacks, it has become imperative for banks to establish robust cybersecurity measures to protect their systems and information. One such measure is the implementation of a Cybersecurity Auditing Framework (CSAF), which helps identify vulnerabilities, assess risks, and ensure compliance with industry standards and regulations. Cyber security (CS) is, essentially, the process of ensuring the safety of cyberspace from known and unknown threats. According to the International Telecommunication Union, cyber security is the collective application of strategies, security measures, plans, threats administration tactics, engagements, training, paramount practices, and assurance and expertise that can be used to guard the cyber system, organization and related assets [18] . Cyber security (CS) is crucial because government, military, corporate, financial, and health organizations accumulate, process, and store unprecedented amounts of data on computers and other devices. A significant portion of that data can be sensitive information, whether it is intellectual property, financial data, personal information, or other types of data for which unauthorized access or exposure could have negative consequences [25] .

To achieve effective cyber security, an organization needs to coordinate its efforts throughout its entire cyber system. Security countermeasures help ensure the confidentiality, availability, and integrity of cyber systems by preventing asset losses from cyber security attacks [8] . Failure in cyber security can lead to the loss of intellectual property, direct financial loss from cybercrime, loss of sensitive business information, sabotage of operations, extra costs for systems' recovery, stakeholders loss of on system confidence. Cyber Security Auditing (CSA) is an independent review and examination of system records, activities and related documents. These audits are intended to improve the level of cyber security, avoid improper cyber security designs, and optimize the efficiency of the security safeguards and security processes. It is a systematic, measurable technical assessment of how security policies are built into the cyber systems and it is part of every successful cyber security management [26] .

The major challenge in cyber security in the banking industry is the knowledge gap about the holistic approach of cyber security management. Due to this, most security requirements are derived by the external bodies than the Bank's management. Even though security measures are technical, physical and human, banks concentrate on the technical security measures only in order to comply with the external requirements. This situation creates a bad security culture in most of the banking industry [22] . Some of the challenges in the banking industry are numerous and inherently diverse. A traditional approach in addressing these challenges includes the use of technical controls to treat risks. While technical controls are helpful in protecting valued assets, unfortunately, technical controls alone are insufficient in providing reliable security. Thus, global outsourcing, consumer-centricity, security compliance, and legislation as emerging global business drivers have imposed new security requirements that complicate the traditional perspective of cyber security [4] . Literature in the area of cyber security shows that security culture is still in its early stages of development, especially in developing countries. Thus, the establishment of an organizational cyber security culture is necessary for effective cyber security [22] .

Cyber Security Framework (CSF) is a set of industry standards and best practices to help organizations manage cyber security risks. It is, essentially, a blueprint for building a cyber-security program to manage risk and reduce vulnerabilities. The Framework enables organizations - regardless of size, degree of cyber security risk, or cyber security sophistication - to apply the principles and best practices of risk management to improve the security and resilience of critical infrastructure [25] .

A cyber-attack involves the malicious application of information and communication technology either as a target or as a device by several malicious actors. Cyber security could also refer to the security of internet, computer networks, electronic systems and other devices from the cyber-attacks.

The banking sector faces unique cybersecurity challenges due to the nature of its operations and the value of the assets it holds. Cyber attacks targeting banks can result in significant financial losses, reputational damage, and compromised customer trust. Traditional security measures such as firewalls and antivirus software are no longer sufficient to protect against sophisticated cyber threats. Therefore, there is a need for a comprehensive and tailored CSAF specifically designed for the banking industry.

1.2 Statement of the Problem

The banking sector faces numerous cybersecurity challenges due to the increasing frequency and sophistication of cyber threats. These threats pose a significant risk to the confidentiality, integrity, and availability of banking systems and customer data. While existing cybersecurity auditing frameworks exist, they often lack the specificity and tailored approach required to address the unique challenges faced by banks. Therefore, there is a need to develop a Cybersecurity Auditing Framework (CSAF) specifically tailored for the banking industry.

The problem identified is the absence of a comprehensive and specialized CSAF that adequately addresses the specific cybersecurity requirements of banks. Existing frameworks may not sufficiently cover the intricate nature of banking operations, the regulatory landscape, and evolving cyber threats. Consequently, banks may struggle to effectively assess their cybersecurity posture, identify vulnerabilities, and implement appropriate controls and countermeasures.

Our research intends to address this problem by developing a tailored CSAF for the banking sector. The research will identify the specific cybersecurity challenges faced by banks, review existing frameworks and their limitations, and analyze the unique requirements and considerations for a comprehensive CSAF. By leveraging a mixed-methods approach, including literature review, interviews, surveys, prototype development, and evaluation, our research will provide a solution that enhances the ability of banks to detect, prevent, and respond to cyber threats effectively.

The developed CSAF will offer a standardized and practical approach to cybersecurity auditing within the banking sector. It will consider the regulatory requirements, industry best practices, and the evolving threat landscape. The framework will enable banks to conduct thorough assessments of their cybersecurity posture, identify vulnerabilities, and implement appropriate controls to mitigate risks. By addressing the specific challenges faced by banks, the proposed CSAF will contribute to strengthening the overall cybersecurity defenses of the banking industry.

1.3 Research Questions

The study intended to address the following research questions:

• What are the existing practices and processes of cybersecurity auditing in the banking sector, including the methods, techniques, standards, and tools currently employed?
• What are the major challenges faced by the banking sector in managing cybersecurity, specifically focusing on the identification and mitigation of cyber threats?
• What framework can effectively support banking industries in conducting cybersecurity auditing and ensure the protection of their cyber resources?

1.4 Objective of the Study

The primary objective of this research is to develop a Cybersecurity Auditing Framework (CSAF) tailored for the banking sector. The framework will provide a comprehensive approach to assess the cybersecurity posture of banks, identify vulnerabilities, and recommend appropriate controls and countermeasures. By developing a specialized CSAF, banks can enhance their ability to detect, prevent, and respond to cyber threats effectively.

The specific objective of the research included:

• To examine and analyze the current practices and processes of cybersecurity auditing in the banking sector, including an assessment of the methods, techniques, standards, and tools utilized.
• To identify and explore the major challenges faced by the banking sector concerning cybersecurity management, with a particular focus on the identification and mitigation of cyber threats.
• To develop a comprehensive framework that addresses the specific needs and requirements of the banking industry, supporting effective cybersecurity auditing and ensuring the protection of cyber resources.

By addressing these research questions and objectives, the study aims to provide valuable insights into the current state of cybersecurity auditing in the banking sector, identify key challenges, and propose a tailored framework that can support banks in effectively protecting their cyber resources.

1.5. Scope of the Study

The scope of this research mainly focuses on proposing a workable cyber security auditing framework that can serve as guideline for banking sector to overcome cyber security risks by focusing on the existing practices, challenges, methods, and techniques currently applied in the Banking sector.

1.6. Significance of the Study

The development of a tailored Cybersecurity Auditing Framework for the banking sector will have several significant implications. Firstly, it will assist banks in identifying and mitigating potential cyber risks, thereby enhancing the overall security posture of the banking industry. Secondly, it will provide a standardized approach to cybersecurity auditing, ensuring compliance with industry regulations and best practices. Finally, the research findings will contribute to the existing body of knowledge on cybersecurity frameworks and provide insights into the specific challenges faced by the banking sector.

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