PRELIMINARY ANALYSIS OF THE CONVERGENCE PROCESS OF CYBER SECURITY SYSTEMS AND FINANCIAL MONITORING OF COUNTRIES
Abstract
The article is devoted to the current problem of convergence of cybersecurity systems and financial monitoring of the countries, which will contribute to the formation of a more effective system for combating financial and cybercrime. The need for this study is due to the growing level of cyberattacks in the financial sector, which increases the risks of national security vulnerability. The authors conducted a preliminary analysis of groups of indicators that identify the level of cybersecurity development in the country and its ability to counteract the processes of legalization of criminal proceeds and financial crimes. Global Index Cybersecurity, ICT Development Index, Networked Readiness Index, National Index Cybersecurity, Digital Development Level. The second group includes the Political Stability Index, Government Effectiveness Index, Ease of Doing Business, Crime Index, Corruption Perceptions Index, Global Terrorism Index, and Financial Secrecy Index formed the first group. Statistical data on the analysed indicators were selected for 76 countries in 2018. At the first stage, a statistical analysis of the selected indicators was performed, which consisted of calculating basic statistics: mean, median, modal value, minimum and maximum levels, standard deviation and coefficient of variation. As a result, the heterogeneity of data caused by different levels of economic development of selected countries was revealed. In the second stage, a canonical analysis was conducted. As a result, it was established that there is a close relationship between cybersecurity and financial monitoring at 0.91. Causality between the groups of indices was also established. Thus the level of development of cybersecurity is a consequence indicator, and the level of countries' ability to counteract the legalization of criminal proceeds and financial crimes is the cause of cybersecurity. At the third stage, the results of correlation analysis revealed the most collinear indicators. This allowed excluding indices of information and communication technologies development and perception of corruption and optimizing data. The obtained results of the analyses are planned to be further used to calculate phase portraits and determine the levels of "maturity", "equilibrium", and "relaxation fluctuations of stability loss" for countries in the process of convergence of their cybersecurity systems and financial monitoring.
References
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An J., Duan T., Hou W., Liu X. (2021). Cyber risks and initial coin offerings: Evidence from the world. Finance Research Letters, 41, article number 101858. DOI: https://doi.org/10.1016/j.frl.2020.101858.
Chen J., Zhu Q., Başar T. (2021). Dynamic Contract Design for Systemic Cyber Risk Management of Interdependent Enterprise Networks. Dynamic Games and Applications, 11 (2), pp. 294 – 325. DOI: https://doi.org/10.1007/s13235-020-00363-y.
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Uddin, M.H., Ali, M.H., Hassan, M.K. (2020). Cybersecurity hazards and financial system vulnerability: a synthesis of literature. Risk Management, 22(4), pp. 239-309. DOI: https://doi.org/10.1057/s41283-020-00063-2.
Couchoro M.K., Sodokin K., Koriko M. (2021). Information and communication technologies, artificial intelligence, and the fight against money laundering in Africa. Strategic Change, 30(3), pp. 281-291. DOI: https://doi.org/10.1002/jsc.2410.
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Mhlanga D. (2020). Industry 4.0 in finance: the impact of artificial intelligence (ai) on digital financial inclusion. International Journal of Financial Studies, 8(3),45, pp. 1-14. DOI: https://doi.org/10.3390/ijfs8030045.
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Carter D. (2018). How real is the impact of artificial intelligence? The business information survey 2018. Business Information Review, 35(3), pp. 99-115. DOI: https://doi.org/10.1177/0266382118790150.
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Gagliani G. (2020). Cybersecurity, Technological Neutrality, and International Trade Law. Journal of International Economic Law, 23(3), pp. 723-745. DOI: https://doi.org/10.1093/jiel/jgaa006.
Dawson M. (2018). Applying a holistic cybersecurity framework for global IT organizations. Business Information Review, 35(2), pp. 60-67. DOI: https://doi.org/10.1177/0266382118773624.
Augustinos T.P. (2018). Developing cybersecurity requirements in banking (And Other financial services). Banking Law Journal, 135(3), pp. 155-159.
