Post-Incident Audit Reviews in Banking: Evaluating Lessons Learned from Cyber and Financial Fraud Cases

Abstract

This research examines the effectiveness of post-incident audit reviews in banking institutions following cyber and financial fraud incidents, with particular focus
on how these reviews contribute to improved internal control frameworks. Through
comprehensive analysis of 147 documented fraud cases across global financial institutions from 2019 to 2022, this study develops a systematic framework for evaluating post-incident learning and control enhancement. The research introduces a
novel Post-Incident Improvement Index (PIII) that quantifies control framework enhancements across technological, procedural, and organizational dimensions. Empirical results demonstrate that institutions conducting rigorous post-incident audits achieve 58% greater control improvements and 42% faster implementation of
corrective measures compared to those with less systematic review processes. The
study reveals that cyber fraud incidents predominantly drive technological control
enhancements, while financial fraud cases more significantly influence procedural
and organizational controls. Findings indicate that successful post-incident learning requires structured review methodologies, cross-functional collaboration, and
systematic knowledge retention mechanisms. This research contributes both theoretical advancements in organizational learning from security incidents and prac-
tical implementation guidelines for banking institutions seeking to enhance their
resilience through systematic post-incident analysis and control framework evolution.