Enhancing Cybersecurity Governance in Financial Institutions: A Quantitative Study on Control Deficiencies and Regulatory Compliance

The increasing frequency and sophistication of cyber threats in the financial sector have underscored the critical need for robust cybersecurity governance. This study explores the control deficiencies in cybersecurity governance within financial institutions and assesses their impact on regulatory compliance. By adopting a quantitative approach, the research identifies common gaps in cybersecurity controls, measures their correlation with regulatory adherence, and analyzes the consequences of non-compliance. Through surveys, audits, and case studies of financial institutions, the study examines the role of IT governance frameworks, such as COBIT, NIST, and ISO 27001, in addressing cybersecurity risks and ensuring regulatory compliance. The findings reveal that many financial institutions struggle with control deficiencies, particularly in areas like incident response, vulnerability management, and third-party risk oversight. These deficiencies often lead to regulatory non-compliance, exposing institutions to significant financial, legal, and reputational risks. Additionally, the study highlights how an ineffective alignment between IT governance and business objectives exacerbates these challenges. The research further explores the regulatory landscape, including frameworks like GDPR, GLBA, and PCI DSS, which require financial institutions to maintain robust cybersecurity measures and regular compliance audits. In response, this proposes several strategies for enhancing cybersecurity governance, including strengthening IT governance frameworks, improving control measures, and fostering a culture of continuous cybersecurity awareness and compliance. The review emphasizes the need for institutions to invest in resources, tools, and training to address control gaps and ensure effective risk management. Overall, this research contributes to a deeper understanding of how control deficiencies impact cybersecurity governance and regulatory compliance, offering actionable insights for financial institutions to enhance their resilience against evolving cyber threats.

Enhancing in: A on Control.