Risks of Misunderstanding Cyber Security
The financial services sector has been through tremendous adversity since the Great Recession. Institutions have emerged from the financial crisis only to find tougher regulations and constant threats from cyber attacks. In fact, these recent cyber attacks
and data breaches are changing the way banks operate and view risk.
The cost of cybersecurity breaches for the financial services industry includes not only financial losses but damages to reputation and a reduction in customer confidence as in the case of Wells Fargo. Repeated security breaches can severely impact the long-term
health of a financial institution. By understanding these threats, identifying them, and implementing strategies to mitigate damage are essential for the financial well-being of an institution.
An Enterprise-Wide Approach To Cyber Security
Cyber risk can often be considered a non-traditional risk to an institution. However, in reality, cyber risk should be treated as any other risk to an institution. Cyber risks should be part of the enterprise risk management at a holistic enterprise-wide
level just like credit, market, operational and liquidity…
