Wednesday, December 25, 2019 07:00AM / by
Fitch Ratings/ Header Image Credit: Clear Bridgetech
As banks and
non-bank financial institutions (NBFIs) embrace the evolving digitization of
financial services and become more interconnected through tie-ups and
partnerships, risk controls have become increasingly important as cyber risk
and other security threats have grown, Fitch Ratings says.
Cyber incidents
have yet to result in ratings changes for banks or NBFIs. However, ratings
would be sensitive to fallout from cyber events that have outsized or lasting
impacts on an issuers’ financial stability, cause significant reputational
damage or a sustained loss of client trust, negatively disrupt business
operations or result in large fines or settlements.
Banks and NBFIs
face varying levels of exposure to cyberattacks, depending on their perceived
attractiveness by attackers such as criminal groups, terrorists, insiders,
‘hacktivists’ and nation states. Financial companies are targeted for
cyberattacks given large amounts of personal identifiable information (PII) and
payment card industry (PCI) data as well as their systemic interconnectivity…
