The impact of information and communication technologies on the effectiveness of internal control system in banks

Abstract

Information and communication technologies are one of the most important factors in the efficient operation of the bank’s internal control system. The development of new technologies and their inclusion in the information systems of banks, has predetermined the formation of cyber or information risks to which banks are exposed due to obsolete information systems. Therefore, the need to review and improve internal control systems in banks cannot be avoided. Based on the topic, the purpose of this study is to assess the role of information and communication technologies and their impact on the efficiency of the internal control system and its components (control environment, risk assessment, control activities, information and communication and monitoring activities) in banks. It also reflects the way in which information technology and electronic data processing influence banking processes. In this regard, the following research methods were used: analysis and synthesis, induction and deduction. JEL: G32, M40.