Recently, domestic financial institutions have invested heavily in the management information systems to achieve competitive advatage in the age of open financial market. As a result of the rapid adoptation of information technology (IT), there may be a hole for accidents and crimes.
This paper tries to study those negative effect of IT in Korean financial institutions This study is composed of two parts. In the first part, the computer crime cases are analysed by types, and the weakness and control scheme to prevent the crime are discussed. Next, the model and hypotheses are developed to test how much internal control affects the perceived risk of computer crime.
Data are collected by using questionaire. The statistical analyses inclde Pearson correlation analysis, Spearman's rank correlation analysis, simple and multiple regressions. "Four alternative hypotheses are contirmed and one is rejected out of the five proposed hypothesis" The results of hypothesis tests are as follows;
Hypothesis 1. The greater the degree of general control of information systems is, the less the perceived risk of computer crime is. [adopted]
Hypothesis 2. The greater the degree of applicational control of information systems is, the less the risk of perceived computer crime is. [rejected]
Hypothesis 3. The greater the sum of general control and application control in information systems is, the less the risk of perceived computer crime is. [adopted]
Hypothesis v. The greater the degree of information systems auditing is, the less the risk of perceived computer crime is [adopted]
Hypothesis 5. The greater the consistency between the perceived importance and implementation for internal control of information systems is, the less the risk of perceived computer crime is. [adopted]
The population is limited to bank and security companies. Therfore, the results of this study have limited generalizability. The future research may extend the subjects to other industries
