An analysis of banks and iGaming companies from a risk management perspective

Abstract

This dissertation aims to identify existent and emerging risks of the banking and iGaming industries, together with common risks. Since risk management is crucial to their operations, this dissertation will analyse how risks are managed and how technology is used to assist in the management of these risks. This is carried out by researching the level of risk maturity, prevailing risk culture, and the adoption of Enterprise Risk Management. Another objective is to research the potential implementation of a solvency framework in the iGaming industry. An analysis of the significance of the industry to Malta, similarities and distinctions in terms of risks and operations provides further insight and comparison. The final objective is to analyse the relationship between the two industries in Malta from a risk management perspective, whilst providing recommendations on how risk management can aid in improving the relationship. The objectives of this dissertation are achieved by applying existing academic research to the Maltese banking and iGaming industries. This is complemented with semi-structured interviews held with 23 stakeholders working in risk management. The findings indicate exposure to common existent and emerging risks, despite risk management being done with slightly different approaches. Furthermore, the iGaming industry is in favour of implementing a solvency framework to safeguard the industry and its customers. The relationship between the two industries is a rather difficult and inexistent one, necessitating considerable risk management efforts from both industries. This dissertation concludes that owing to the similarity of both industries, their dependency on each other and significance to Malta’s economy, both industries should take a risk-based approach to manage their risks. Various recommendations are made to tackle existing issues.