Contribution of Information Technology Capabilities to Reducing Banking Risks: A Case Study of the Central Bank of Iraq

Abstract

The global world has witnessed the rapid development of information technology that has affected all institutions, including banks, especially central banks. Banking departments adopt the necessary means and controls to record transparency and disclose periodic information in its high direction about each type of risk and how it can be managed. For this reason, the investigation problem can be clarified by asking: Do IT capabilities contribute to reducing banking risks? This main question is the following sub-questions:

• Does TI contribute to reducing bank money?
• Does infrastructure (TI) contribute to less bank money?
• Does TI contribute to reducing bank funds?

The Central Bank of Iraq was selected as the scope of the study at the end of its mortgage testing. The study adopts an analytical focus, as the questionnaire format is used as a data retrieval tool, while statistical methods are used to analyze the data.

The CBI management leaders were selected as the study institution, while the study investigation department included 60 people. Researchers trust AMOS and SPSS statistical software packages to monitor desired results. Investigators come to different conclusions, the most important of which is that there is a direct correlation between IT capabilities and banking money in general. I suggest that the adoption of advanced capabilities by a bank will increase their business opportunities, as advanced information systems and software allow risk data to be retrieved and analyzed in a more accurate and efficient manner. The studio made a series of recommendations, including the need to develop new project management tools and techniques that could improve the bank's ability to manage risks in a more effective way, in addition to adopting RISGOS management models such as COSO and COBIT.