Influence of Cybersecurity Risk on Financial Stability of Deposit Taking SACCOs in Kenya
DOI:
https://doi.org/10.70641/ajbds.v2i1.155Keywords:
Financial Stability, DT-SACCOs, Kenya, Cybersecurity RiskAbstract
This study examines the influence of cybersecurity risk on financial stability of Deposit Taking Savings and Credit Co-Operative Society in Kenya. Using explanatory research design, data was obtained from 217 respondents comprising head of risk, head of ICT and business innovations, finance manager and executive- SACCO board member. The study explored how management capability indicator was influenced by ransomware, phishing and distributed denial of service. The gathered quantitative data was analyzed by use of descriptive and inferential statistics. Regression analysis revealed that cybersecurity risk had a moderate negative statistically significant influence on financial stability of DT-SACCOs in Kenya (β = -0.280, R = - 0.268, t = -4.077, p= 0 .000, < 0.05). The implication of the findings is that, as cybersecurity risk decreases, there would be an increase in financial stability. The study therefore recommends management of DT-SACCOs to greatly invest in cybersecurity infrastructure and align clear policies and procedures to curb attacks.
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