Quantum computing in financial security: A risk management framework for systemically important financial institutions

Abstract

This research explores the application of quantum computing in enhancing financial system security, focusing on developing a robust risk management framework for systemically important banks in Sierra Leone. By evaluating 2 leading banks in the country, this study identifies key vulnerabilities, assesses potential quantum computing solutions, and provides a blueprint for safeguarding financial systems in the quantum era. Through implementation of the proposed framework, participating institutions demonstrated significant improvements in threat detection, encryption strength, and risk mitigation, with quantum-enhanced systems showing 99.8% accuracy in detecting sophisticated financial fraud attempts while reducing false positives by 90% compared to traditional systems. The implementation resulted in a 60% reduction in security incident response time and a 75% improvement in encryption strength against potential quantum attacks. These advancements provide crucial protection for financial infrastructure while ensuring regulatory compliance and operational resilience.