Influence of Data Breach Risk on Financial Stability of Deposit Taking SACCOs in Kenya
Keywords:
Financial Stability, DT-SACCOs, Data Breach Risk, KenyaAbstract
This study examines the influence of data breach risk on financial stability of Deposit Taking SACCOs in Kenya. Driven by positivism philosophy and explanatory research design, data was collected from 256 respondents (84.7% response rate) comprising of head of risk, head of ICT and business innovations, finance manager and executive- SACCO board member. Cross sectional data was used and a questionnaire was administered to gather data. The study investigated how hacking, insider threat and unpatched software influenced management capability indicator. Regression analysis revealed a weak negative relationship between data breach risk and financial stability (R = -0.113, R2 = 0.013, β = -0.166, p = 0.048, < 0.05), leading to the rejection of the null hypothesis. These findings imply that as data breach risk increases, there would be a decrease in financial stability. The study recommends tracking vulnerability patches, updating Softwares and ensuring enriched patching backup security by management certify a more stable financial system. These findings contribute valuable insights for SACCOs management and regulatory authority seeking to manage potential threats by promoting resilience towards data breach risk through management capability practices.
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Copyright (c) 2025 Edah Kawanyiri, Elizabeth Kalunda, Timothy C Oketch
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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
