Strategic Cyber-Risk Alignment: A New Framework for Financial Institutions Facing the Digital Future

Purpose: This study explores how cybersecurity strategies with financial risk management enhance institutional resilience to cyber and financial threats. Design/methodology/approach: A mixed-methods approach was employed, combining qualitative interviews with quantitative survey data to assess cybersecurity maturity and financial risk resilience in Abu Dhabi’s government-affiliated financial institutions. Findings: Institutions that use proactive and well-planned cybersecurity strategies are better at reducing risks, maintaining financial stability, and adapting to changes compared to those that only respond to issues as they arise or use basic methods. Research limitations/implications: The study is limited to a specific regional and institutional context; future research should extend the framework’s relevance across varied financial systems and regulatory environments. Practical implications: The study introduces a new framework linking cybersecurity to financial risk, with potential for broader application across institutions. Originality/value: The study provides a usable tool to help financial institutions manage cyber risk and improve resilience.