Discuss ways to imbibe cyber resilience in banks to protect them from cyber threats.
FREMONT, CA: In an increasingly digital world, where financial institutions are prime targets for cyber threats, banks are turning to a critical resource to safeguard their operations: talent.
Building a collaboration between business leaders and cyber engineers can help banks strengthen their cyber-security resilience efforts as cyber-attacks become more sophisticated. For instance, numerous banks often notify clients of breaches, which may desensitise consumers to alerts and have long-term detrimental effects on consumers and financial institutions.
Financial institution executives should be aware of some aspects that have altered cyber security and take action to strengthen their cyber resilience. They must ensure that business leaders take responsibility for cyber security in partnership with their technology partners, take proactive steps to provide their workforce with cyber-related skills, accurately assess their vulnerabilities, and develop a culture of cyber awareness throughout the entire organisation.
Ways for Banks to Improve Cybersecurity Resilience
Banks can evaluate their susceptibility to vulnerabilities. This evaluation aims to identify emerging vulnerabilities within their infrastructure and ascertain the potential time required for addressing them when identified. Besides, maturity assessments and various benchmarking methods provide opportunities to identify weaknesses. Banks have to monitor their investments in cybersecurity to keep a balance.
Financial institutions can determine if they allocate resources appropriately or excessively in cyber functions by comparing their cybersecurity spending with other banks. Leadership should analyse the structure of their cybersecurity operations and evaluate which functions are handled internally and which are outsourced. Additionally, banks can address cybersecurity from a talent perspective by evaluating skill sets across various departments to determine if individuals in roles like risk management can assume cybersecurity-related positions.
Although spending money on cyber security can be expensive, the alternative is much more costly. The loss of transactional information in customer accounts could be harmful if the bank cannot modify each account's balance. Information loss can result in severe delays for businesses. The impact of a cyber event may also increase due to variations in the regulatory environment. Depending on where they conduct business, some banks may be subject to two or three authorities, which heightens the risk of an inquiry and fines in the event of a cyber disaster. Moreover, regulators are putting more pressure on banks to shorten the reporting time for cyber incidents.
Adopting talent-driven strategies has emerged as a cornerstone for fortifying cyber resilience in the banking sector. As threats grow more sophisticated and the stakes higher, this approach acknowledges the importance of skilled professionals and underscores the need for a comprehensive, forward-thinking strategy to protect the integrity of financial systems and customer trust.
