Safeguarding financial resilience through digital trust and responsible innovation

Ingrid Vasiliu-Feltes
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Ingrid Vasiliu-Feltes: Globalist, Futurist, Digital Strategist, Fusion-Tech Expert, RevExpo Consulting, USA

Journal of Risk Management in Financial Institutions, 2024, vol. 17, issue 2, 130-141

Abstract: In the rapidly evolving financial industry landscape, the convergence of digital and physical realms, known as the ‘phygital era’, presents novel challenges for boards that aim to build digital trust and strengthen their financial resilience while fostering responsible innovation and maintaining their competitive edge in the global business arena. These encompass people management, processes and their digital technology portfolio. Building a new phygital culture, upskilling and reskilling the workforce, deploying a mix of intelligent automation and hybrid augmented workflows and deploying frontier technologies responsibly are now on the agenda for forward-thinking boards. The latest deep tech innovation trends in financial services offer exponential pathways for innovative solutions yet increase cybersecurity threats, create new ethical dilemmas and demand a new risk tolerance from board executives. Novel risk management styles, the value of harmonising cyber and ethics programmes, and leadership traits are potentially viable solutions for risk management at the board level in this phygital era. This paper proposes a trifecta that financial industry boards can embrace to adapt their risk governance to the demands of this phygital era: zero trust cybersecurity, ethics by design and risk management by design. By deploying this combination of strategies, boards within the finance industry can successfully navigate the complexities of the phygital era and steer their organisations towards a more secure, trustworthy and sustainable future.

Keywords: phygital; risk; governance; ethics; cybersecurity; innovation; leadership (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2024
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