Digital Money: Operational Risks and the Threats to Operational Resilience

In his new book, Digital Money: Operational Risks and the Threats to Operational Resilience, Patrick McConnell evaluates the far-reaching impacts of emerging types of digital money upon financial institutions’ operational risk and resilience profiles.

The rise of digital money potentially offers diverse benefits such as faster transactions, lower transactions fees, greater security, transparency and greater inclusivity. However, the author highlights how the move towards the full digitisation of money could radically change the relationship between banking operations and operational risks.

McConnell discusses how many new operational risks could potentially arise as digital money innovations are integrated with existing systems. In addition to helping to manage existing risks, operational risk management (ORM) groups will have to become experts in technology and cryptography – both of brand-new digital money technologies and existing technologies which will have to be replaced or significantly modified. The author explores how the digital financial ecosystem is adapting – providing a comprehensive analysis which covers emerging types of digital money,
evolving global and instant payments, cryptocurrencies, central bank digital currencies (CBDCs) and stablecoins, and other financial and technology innovations, such as post-quantum computing. McConnell discusses potential digital money vulnerabilities which could disrupt the core systems of all banks and thus the overall resilience of the banking system. McConnell’s analysis of what’s at stake is underpinned by decades of the author’s experience in risk management and information technology.

For risk managers, regulators and senior executives alike, Digital Money: Operational Risks and the Threats to Operational Resilience is both a wake-up call and a playbook. Packed with insights, case studies, and practical guidance, this book is essential for anyone looking to protect their organisations and adapt to the fast-changing and ever-expanding digital money landscape.