Analysis of the Impact of Cybersecurity Risk Disclosure on Enhancing the Value of Iraqi Banks

Abstract

This study aims to highlight the importance of disclosing cybersecurity risks in Iraqi banks by examining the nature of the risks and cyberattacks they face. The research employs a deductive approach for the theoretical framework and an inductive approach—using a checklist as the primary tool—for data collection and analysis through descriptive and inferential statistical methods in the practical component. The findings reveal that bank employees recognize the importance of cybersecurity, while also indicating the presence of substantial challenges that limit the level of risk disclosure. The study focuses on five dimensions of cybersecurity risk disclosure, with the most significant being the dimension of compliance with international regulations and standards, as well as enhancing the dimension of cybersecurity risk response. Other dimensions include governance for the protection of sensitive financial data, in addition to outlining the financial and strategic impact and cybersecurity risk management. In light of the results, the study recommends enhancing the disclosure of cybersecurity risks in financial reports and implementing regular training programs to improve employee preparedness. It also recommends adopting the proposed index for cybersecurity risk disclosure in banks listed on the Iraq Stock Exchange.