The Role of Social Systems Failure Risks and Control in the Digitization of Banking: A Case Study of Banking Failure in Ireland

Abstract

The digitization of banking has brought about significant advancements in the financial sector. However, as with any technology, digitized banking systems are not without risks. This paper examines the role of social systems failure risks and control in the digitization of banking using a case study of a banking failure in Ireland. Drawing on interviews and testimonials from a national parliamentary inquiry and analysis of relevant documents, the study identifies the social systems failure risks and control mechanisms that were in place prior and during the banking failure. The findings reveal that social systems failure risks, such as a lack of communications, insufficient training, and inadequate risk management, played a significant role in the banking failure. Moreover, the study highlights the importance of effective control mechanisms, such as robust risk assessment procedures and strong governance structures, in mitigating these risks.