The goal: resilience and protection
Cybercriminal gang steals $1 billion
$7.7 million to manage cyber risk
According to recent calculations, the mean annualized cost of managing cyber risk for every company is $7.7 million.2
A financial firm’s frequent response is to build a top-down approach for managing cyber security. Maybe it’s time for a new cyber risk management starting point—one focused on cooperation.
DOWNLOAD REPORT: THE CONVERGENCE OF OPERATIONAL RISK AND CYBER SECURITY [PDF]
As the number and complexity of cyber attacks rises, financial institutions’ profitable existence is threatened. To effectively manage cyber risk, these industry trends point to building a partnership between operational risk and cyber security:
A coordinated response can mitigate reputational damage and reduce regulatory fines.
Senior leadership is catching on: They are realizing solutions stretch past technology, reaching into the people and process layer.
Institutions already are consolidating their silo-based risk management, due to poor cost-to-income ratios.
To help financial firms respond to increasing cyber threats, Accenture and Chartis Research have identified four keys to alignment:
Governance and ownership:
Establishing clear lines of responsibility from the board level downward
Taxonomies and methods:
Creating a common language to bridge the gap between the chief technology officer and the chief risk officer
Skills and capabilities:
Nurturing capabilities and competencies across operational risk and cyber security to develop a unified response
Technology and data:
Tapping technology, data and analytics to deliver a strong attack response
Integrating fraud, IT, cyber security and operational risk may not be a simple endeavor. It could mean defining—and redefining—governance, skills, taxonomies and technology to meet a common definition, language and approach to help operational and cyber risk converge.
An important first step is recognizing cyber security as a risk, complete with risk-based probabilities and impacts. Managing cyber risk in a convergent manner can bring both protection and resilience.
DOWNLOAD REPORT: THE CONVERGENCE OF OPERATIONAL RISK AND CYBER SECURITY [PDF]
Source:
1. “The Great Bank Robbery: Carbanak cybergang steals $1bn from 100 financial institutions worldwide,” Kaspersky Lab, Virus News, February 16, 2015. Access at: http://www.kaspersky.com/about/news/virus/2015/Carbanak-cybergang-steals-1-bn-USD-from-100-financial-institutions-worldwide
2. “Forewarned is Forearmed, 2015 Cost of Cyber Crime Study: Global,” Ponemon Institute, October 2015. Access at: http://www8.hp.com/uk/en/software-solutions/ponemon-cyber-security-report/index.html
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