The impact of cybersecurity governance on reducing cloud accounting risks: A study of Saudi companies listed on the financial market

Abstract

The rapid adoption of cloud computing has revolutionized the accounting and auditing sectors by offering unprecedented scalability and operational efficiency. In the context of Saudi Arabia's Vision 2030, the shift to cloud is a cornerstone of national digital transformation. Yet, this transition exposes sensitive financial data to sophisticated threats such as ransomware and phishing. This led to critical vulnerabilities in data integrity and regulatory compliance. This study examines the impact of cybersecurity governance on cloud accounting risk (CAR) reduction in Saudi-listed companies by evaluating five independent variables: awareness and training (CRAT), audit management (CRAM), risk management (CRM), powers and responsibilities (CPR), and cybersecurity strategies (CS). The research provides a critical pathway for developing secure infrastructures by aligning internal controls with global NIST and ISO standards to ensure financial credibility. Using Partial Least Squares Structural Equation Modelling (PLS-SEM), the study validated five core hypotheses. The finding of a statistically significant positive relationship between governance implementation and risk reduction (p=0.000). The strongest influence was observed in Cybersecurity Powers and Responsibilities (β=0.795), with the model demonstrating moderate to strong predictive power across all dimensions. The study concludes that effective governance is inseparable from successful risk reduction and recommends that Saudi organizations formally clarify cybersecurity roles, enhance internal audits as mediating factors, and prioritize employee training. Ultimately, the continuous evolution of these governance structures is essential for maintaining stakeholder trust and ensuring the long-term integrity of the Saudi financial sector.