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The Perceived Effectiveness of Blockchain for Digital Operational Risk Resilience in the European Union Insurance Market Sector

Author

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  • Simon Grima

    (Department of Insurance, Faculty of Economics, Management and Accountancy, University of Malta, MSD2080 Msida, Malta)

  • Murat Kizilkaya

    (Department of Economics, Faculty of Economics and Administrative Sciences, Ardahan University, 75000 Ardahan, Turkey)

  • Kiran Sood

    (Chitkara Business School, Chitkara University, Punjab 140401, India)

  • Mehmet ErdemDelice

    (Department of Insurance, Faculty of Economics, Management and Accountancy, University of Malta, MSD2080 Msida, Malta)

Abstract

Due to the rise in the demand for information communication technologies (ICT), the need for operational risk resilience within the European insurance market sector has grown exponentially. This study aims to use the case of blockchain to evaluate whether the five characteristics determined from the literature to be required for effective digital risk resilience (specifically, integration, flexibility, reliability, relevance, and timeliness) have an impact on effectiveness in addressing the requirements of the European Union’s proposed Digital Operational Resilience Act (DORA). To achieve this, we developed a survey with 29 statements, which participants were required to answer using a five-point Likert scale. In total, 513 valid responses were received from participants. These were analyzed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). Results show that in the case of blockchain, reliability, flexibility, and relevance were found to significantly relate to its effectiveness in addressing DORA’s requirements, but relationships of effectiveness with integration and timeliness were found to be insignificant. However, when the experience variable was added to the model as the moderator variable, we found that timeliness and relevance have a significant relationship with blockchain effectiveness, while integration, reliability, and flexibility do not.

Suggested Citation

  • Simon Grima & Murat Kizilkaya & Kiran Sood & Mehmet ErdemDelice, 2021. "The Perceived Effectiveness of Blockchain for Digital Operational Risk Resilience in the European Union Insurance Market Sector," JRFM, MDPI, vol. 14(8), pages 1-15, August.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:8:p:363-:d:609986
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    References listed on IDEAS

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    Cited by:

    1. Annie Caruana & Peter J. Baldacchino & Norbert Tabone3 & Lauren Ellul4 Simon Grima5 & 6, 2023. "The Board Mix of Maltese Listed Entities and its Corporate Governance Implications," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 381-405.
    2. Iskender Peker & Ilker Murat AR & Ismail Erol & Cory Searcy, 2023. "Leveraging blockchain in response to a pandemic through disaster risk management: an IF-MCDM framework," Operations Management Research, Springer, vol. 16(2), pages 642-667, June.
    3. Parminder Varma & Shivinder Nijjer & Kiran Sood & Simon Grima & Ramona Rupeika-Apoga, 2022. "Thematic Analysis of Financial Technology (Fintech) Influence on the Banking Industry," Risks, MDPI, vol. 10(10), pages 1-17, September.
    4. Freddy Marilahimbilu Mgiba & Thozama Mxotwa, 2024. "Communicating Banking Cyber-security Measures, Customer Ethical Concerns, Experience, and Loyalty Intentions: A Developing Economy’s Perspective," International Review of Management and Marketing, Econjournals, vol. 14(3), pages 123-135, May.
    5. Sanjeet Singh & Geetika Madaan & Amrinder Singh & Kiran Sood & Simon Grima & Ramona Rupeika-Apoga, 2023. "The AGP Model for Risk Management in Agile I.T. Projects," JRFM, MDPI, vol. 16(2), pages 1-12, February.

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