Question

is there a higher risk generared because of new technological change in the financial market?

if yes, describe and give examples.

if no, state the reason and give exmaples of the benefits.

essay in 500 words.

Answer 1

The new technologies in the financial market generate create higher risk. There is an increasing level of information technology risk. New technologies give great enable to financial market at the same time it make high impact risk. Mergers and acquisitions through IT will leads to management problems. The financial technology solutions are challenging and making swiftness of response requirement for ongoing relevance and viability. There is a broad members were needed to address this situation. Some of the most important risk which exist in the financial market are; strategic risk of IT, cyber security and incident recourse risk, technology vendor and third party risk, data management risk, technology operation risk and risk of ineffective risk management. Institutional, organisational, structural, functional changes increase the scope of investment and also increase the management risk in domestic and internationally. There is wide spread use of business analytics on Business intelligence research platform, data science, data analytics, big data etc. In connection with globalisation in the international financial system, large number of mergers and acquisitions make capital transactions and also the growing importance of monetary policy. There is a high probability of speculation in the financial market. Commercial banks generate high financial surpluses through implementing modern integrated IT system, online banking, business management etc. The advantages from this technologies are there is ease of use, like trading in stock market and it speed up the transaction time. There are several apps like Robin Hood used to trade in stock market.

The security risk of new technologies was one of the recent problems from this risk in financial market. Emails routine contains malware that affect the computer system. There is a high level cyber risk in every sector, especially in financial sector. There is a lot of important files were stolen by the cyber crackers. There is high level of stealing through electronic snooping. Bad actors introduce ransom ware which freeze the system and unlock the payment of substantial fees. The cyber hackers used several methods to hack the financial system and the payment system. A huge amount of money loss through this. Besides this money loss, lots of system and websites were hacked. Hackers mainly focused on money, they can make the whole system under their control. There is less access to find the hacking in the financial system. So after hacking the normal functions continued. This leads to high leakage of information to the third parties.