The Impact of Cybersecurity Spending on the Performance in Egyptian Commercial Banks with A Field Study

Abstract

Finding the relationship between cybersecurity spending and cyber risks is the aim of the study. as well as determining how cyber threats mediate the link between commercial banks' performance and their investment on cyber security. In order to address the study questions, the investigator employed both the deductive and the inductive methods. The field study community, which consisted of bankers employed by Egyptian commercial banks, department managers, branch managers, and deputy managers, was surveyed by the researcher to gather data. From the study population, a random sample of 220 people was chosen, and 180 valid questionnaires—or 82% of all the questionnaires—were gathered.The field study's findings demonstrated that all independent variables—the amount spent on improving cybersecurity, preventing cybercrimes, and detecting them—had a favorable effect on lowering cyber risks in commercial banks. Reducing cyber risks also improved commercial banks' non-financial and financial performance. Among Egyptian commercial banks, the impact of spending on cybercrime prevention and detection ranked highest in terms of the degree to which cybersecurity spending affects cyber risks. With an average of (4.57), Egyptian commercial banks have reduced their cyber risks. The effect of investing on cybersecurity development in lowering cyber risks in Egyptian commercial banks was ranked second, with an average of (4.54).With an average of (4.88), the impact of cyber risks on financial performance in Egyptian commercial banks ranked highest in terms of the relative relevance of the degree of influence on both financial and non-financial performance. Next, with an average of (4.53), the effect of cyber threats on non-financial performance in Egyptian commercial banks ranked second. After doing the Kruskal-Wallis Test, it was discovered that there was no difference in the perspectives of the different research sample categories.