The growth in Internet has led to expansion of e-banking, forming online services, like financial services, account opening and facilities (Kolodinsky et al, 2004). Banks manage risks in some areas like: strategy, credit, market, liquidity etc. (Gorgisco, 2006). However, the growth of e-banking become vulnerable to the challenges it faces. All organisations conducting their business on-line have to focus on controlling the associated risks; e-banking is no exception. Malisuwan (2006) categories these e-banking risks into three main areas to be managed: Board and Management Oversight, Security Controls and Legal and Reputational Risk Management based on the fourteen “risk management principles” identified by the Electronic Banking Group (EBG) of the BCBS. Georgescu (2006) suggests that the competitive pressure to launch new innovative products in very short time scales intensifies the management challenge to ensure that adequate strategic assessment, risk analysis and security reviews are undertaken. Over the past two decades, e-banking has become an increasingly important area of interest, with the risks associated with e-banks during this period of significant growth requiring effective risk management processes. Based on the results of our research, the security risks are clearly identified as the most important as banks are working hard to mitigate the risks and this is very encouraging and effective. The main objectives are to investigate the risks of e-banking services in Oman, and their impact on population. Initially a semi-structured interview is conducted as a pilot study with four knowledgeable and experienced staff from one of the leading banks in Oman, to study employee views on risk management issues in e-banking. After the pilot study, the questionnaire was developed and used in major banks in Oman to determine whether it operates in line with basic risk management principles.

The growth in Internet has led to expansion of e-banking, forming online services, like financial services, account opening and facilities (Kolodinsky et al, 2004). Banks manage risks in some areas like: strategy, credit, market, liquidity etc. (Gorgisco, 2006). However, the growth of e-banking b...