problem 1:

a) Why do we use the Internet as the new distribution channel for e-banking services and products?

b) In the context of e-commerce or e-banking, outline some of the risks related with the informational websites and transactional websites.

c)

• Describe what you understand by the term account aggregation by using an appropriate ex.
• List down the risks related with the aggregation services.

d) In what ways does e-banking distinct from traditional banking in terms of the services they offer? Give appropriate illustrations where essential to support your answer.

e) There are different risks associated inside an e-banking infrastructure and there are different technologies that exist to ensure that the organization’s network boundaries are secure. Describe two such technologies with the help of diagrams to support your answer.

f) Operational risk is the risk of direct or indirect loss resultant from insufficient or failed internal processes, people and systems or from external events. One of the main causes of operational risk concerns management information systems. Describe how management information systems directly relate to the operational risk.

problem 2:

a) Describe why the given security measures are significant for e-banking and how are they implemented?

• Data Confidentiality
• Data Integrity
• Auditing

b) Security Risk Management is a systematic process for finding out the likelihood of different security attacks and for identifying the actions required to prevent or otherwise mitigate those attacks. In brief describe the four phases of the Security Risk Management process.

c) Outline in brief how biometric systems work and differentiate between physiological biometrics and behavioral biometrics, giving an illustration for each biometric measurement.

d) E-banking has exclusive characteristics that might raise an institution’s overall risk profile and the level of risks related with traditional financial services particularly strategic, operational, legal and reputational risks. Outline such unique e-banking characteristics.