By Cheryl Davis and Jim Rives, FTI Consulting
No surprises here: increasing operational risk introduced by cybersecurity threats and vulnerabilities will continue to be of primary concern for banks and other financial institutions, as well as institutions that are integral to financial intermediation. These include credit bureaus, brokers and dealers, money service businesses and the regulatory organizations that oversee these institutions.
In its annual report for the last five years, the Financial Stability Oversight Council has identified cybersecurity as a major threat to companies and governments around the world. Data and cybersecurity breach occurrences in the financial industry have been and are expected to remain amongst the most frequent when compared to other industries. Given the continued and fast-paced development of financial products and services that are heavily reliant on internet-based systems, the increased reliance on third-party providers, and the growing interconnectedness of disparate platforms, the operational risks associated with cybersecurity will require significant resources and oversight in 2018 and beyond.
International standard setting…
