The Impact of Cyber Risks as a Mediating Variable on the Relationship Between Spending on Cyber Security and Performance in Saudi Islamic Banks with A Field Study

Abstract

The aim of the research is to identify the impact of spending on cybersecurity on cyber risks, and to find the mediating effect of cyber risks in the relationship between spending on cybersecurity and performance in Islamic banks. The focus was on both the inductive and deductive approaches in answering the research questions. The researcher used a survey form to collect data from the field study community represented by branch managers and deputy managers, department managers and bankers working in Saudi Islamic banks. A random sample of (260) individuals was identified from the study community, and (250) valid questionnaires were collected at a rate of (96%) of the total questionnaires. The results of the field study showed that the independent variables represented by (spending on prevention or detection of cybercrimes) and (spending on developing cybersecurity) had a positive impact on reducing cyber risks in Islamic banks. Reducing cyber risks also had a positive impact on financial and non-financial performance in Islamic banks. In terms of the relative importance of the degree of impact of spending on cybersecurity on cyber risks in Saudi Islamic banks, it came in first place. The impact of spending on prevention and detection of cybercrimes in reducing cyber risks was 4.76, followed by the impact of spending on developing cyber security in reducing cyber risks with an average of 4.70. In terms of the relative importance of the degree of impact of cyber risks on financial and non-financial performance in Saudi Islamic banks, the impact of cyber risks on financial performance was ranked first with an average of 4.95, followed by the impact of cyber risks on non-financial performance with an average of 4.78. The Kruskal-Wallis Test was conducted and showed no difference between the opinions of the research sample categories.