FSCsec: Collaboration in Financial Sector Cybersecurity -- Exploring the Impact of Resource Sharing on IT Security

TL;DR

This paper examines how resource sharing and collaboration among financial institutions influence cybersecurity effectiveness, using theoretical frameworks to understand motivations, transparency, and regulatory impacts.

Contribution

It introduces a theoretical analysis of resource sharing's role in financial cybersecurity, integrating Protection Motivation Theory and Institutional Theory.

Findings

Resource sharing enhances cybersecurity resilience.

Regulatory pressure influences collaborative security efforts.

Transparency impacts organizational cybersecurity behavior.

Abstract

The financial sector's dependence on digital infrastructure increases its vulnerability to cybersecurity threats, requiring strong IT security protocols with other entities. This collaboration, however, is often identified as the most vulnerable link in the chain of cybersecurity. Adopting both symbolic and substantive measures lessens the impact of IT security spending on decreasing the frequency of data security breaches in the long run. The Protection Motivation Theory clarifies actions triggered by data sharing with other organizations, and the Institutional theory aids in comprehending the intricate relationship between transparency and organizational conduct. We investigate how things like regulatory pressure, teamwork among institutions, and people's motivations to protect themselves influence cybersecurity. By using simple theories to understand these factors, this research aims to provide insights that can help financial institutions make better decisions to protect. We have also included the discussion, conclusion, and future directions in regard to collaboration in financial sector cybersecurity for exploring impact of resource sharing.