A Control-Effectiveness Framework for Technology Risk and Regulatory Reporting

Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma and Funmilayo Ashore-Onisemo

International Journal of Scientific Research in Computer Science, Engineering and Information Technology, 2023, vol. 9, issue 6, 1069-1112

Abstract: Financial institutions and other regulated enterprises increasingly depend on complex technology estates whose failure can propagate into material financial, operational, and prudential consequences. Regulators have responded with granular reporting obligations that demand not only accurate data but demonstrable assurance that the controls governing that data are designed appropriately and operating effectively. Yet the disciplines of technology risk management, internal control, and regulatory reporting remain organizationally and methodologically fragmented, and control effectiveness is often asserted rather than evidenced. This conceptual paper proposes the Technology Risk and Control Effectiveness (TRACE) framework, an integrative structure that connects a technology control taxonomy to explicit effectiveness criteria, a maturity progression, an evidence-and-metrics layer, a closed assurance loop, and a mapping that ties each control to specific regulatory reporting obligations. TRACE draws on established authorities, including the COSO Internal Control–Integrated Framework, COBIT, the NIST Cybersecurity Framework and SP 800-53, ISO 31000 and ISO/IEC 27001, and the Basel Committee’s BCBS 239 principles for risk data aggregation, and organizes them into a coherent, auditable chain of reasoning from control objective to reported figure. We articulate five design components, present a conceptual architecture figure and a maturity-criteria table, and illustrate the framework by mapping a set of technology controls to a representative regulatory reporting obligation for risk data aggregation. We then discuss implementation challenges, including evidence automation, metric gaming, and the tension between standardization and context, and we acknowledge the limitations of a conceptual contribution not yet subjected to empirical validation. The framework offers practitioners a structured vocabulary for evidencing control effectiveness and researchers a testable model for future study.

Keywords: technology risk; control effectiveness; regulatory reporting; internal control; assurance; BCBS 239; GRC; key control indicators (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:jbh:ijsrcs:v9:y2023:i6:id:hcseit23906789

DOI: 10.32628/CSEIT23906789

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