Rising to the cyber challenge together
10 July 2014
Cyber risk is on the rise and a growing concern to the banking industry. 70% of bank CEOs say that it’s a threat to their growth prospects.
Banks are increasingly dependent on third party systems to provide many of their digital services. Whether it’s external data feeds, customer and staff devices or cloud services, banks find themselves having to rely on systems that are outside their control.
Criminals, hacktivists and even nation states, actively seek out these opportunities, using the speed and scale offered by these connected systems as weapons of attack.
This is a problem for the industry. Traditional approaches to risk management focused on a single malicious agent, or single point of attack. But digital attacks can target countless systems or processes in parallel causing widespread harm. An individual online banking or credit card fraud may be small but the combined impact of many can be vast. Companies face death by a thousand cuts in this new digital age.
Banks are at the heart of an interconnected world. They have been collaborating to tackle cyber-crime for some time and defend the system as a whole. But this network now needs to extend to organisations outside of the industry.
Interconnected risks across organisations and industries require organised responses. The time has passed when banks can take their own approach without regard to the wider system in which they operate.
That’s why initiatives such as the Cyber Security Information Sharing Partnership and other information sharing schemes in the industry are proving such a valuable channel for managing evolving and emerging cyber threats.
We are all beginning to realise that only a market-wide response can provide serious, long-term answers to the global challenges caused by cyber threats to banking.
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