Risk Management in Fintech

Abstract

This chapter examines the world of risk management within fintech. It initiates by emphasizing the crucial role of technology and risk assessment in shaping the fintech landscape. It discusses various risk categories prevalent in fintech operations, elucidating the nuances of technology, operational, compliance, strategic, and reputational risks. A comparative analysis across different fintech sub-sectors unveils their distinct risk profiles. The narrative extends to proactive risk management frameworks, contrasting prominent models like the COSO ERM, FAIR Risk Quantification, and NIST Cybersecurity Frameworks. Integral defense measures are scrutinized, encompassing data encryption, access controls, vulnerability assessments, and incident response plans. This chapter underscores the significance of building operational resilience through robust technology infrastructure, regular system updates, disaster recovery planning, and business continuity measures. Ultimately, this chapter culminates in a comprehensive summary, offering pragmatic recommendations to fortify technology risk management in fintech.

Citation

Tyagi, A. (2024), "Risk Management in Fintech", Baker, H.K., Filbeck, G. and Black, K. (Ed.) The Emerald Handbook of Fintech, Emerald Publishing Limited, Leeds, pp. 157-175. https://doi.org/10.1108/978-1-83753-608-520241015