Bank of England’s Systemic Risk Survey shows risk of cyber attack increasing for third time running

Bank of England’s Systemic Risk Survey shows risk of cyber attack increasing for third time running
27.06.2018 11:26 am

Bank of England’s Systemic Risk Survey shows risk of cyber attack increasing for third time running

Infrastructure

The proportion of firms citing cyber attack as a key risk has increased for the third consecutive time in the Bank of England’s Systemic Risk Survey, released today. The survey highlights perceived risks to the UK financial system. Although overall confidence in the UK’s system has increased, the number of firms who perceive cyber attack as a risk has increased to 62 percent.

Finding new ways to mitigate this risk is a growing area of focus for financial services firms. The Bank of England is developing new guidelines to help firms demonstrate resilience against technology threats. The tech industry is coming up with lots of product recommendations to help firms address cyber risk.[2]           

But financial services firms are increasingly moving away from a product-centric approach to cyber-security. Instead, they are focusing on compartmentalising and individually securing their critical applications, such as online banking or interbank payments, in order to prevent a domino effect if one area comes under attack.

But due to legacy infrastructure, it can be difficult for financial institutions to gauge how applications are built into the network and communicating with each other in real-time. This is a crucial first step when it comes to writing security policies for individual applications, says Nick Hammond, Lead Advisor for Financial Services at World Wide TechnologyIt’s important that firms can work out what effects each policy could have on the way the entire system functions.

Nick Hammond, from World Wide Technology, comments: “With financial services firms facing high-levels of regulatory interest in their cyber defences, they are working towards ensuring a high level of application assurance. Whilst older rules required yearly tick-box compliance exercises, new regulations necessitate continued assurance of critical applications.

“But due to the complex nature of existing systems which have been built with different and sometimes conflicting metrics over the years, legacy infrastructures are typically built from a complex patchwork of applications, which communicate with each other in complicated ways.

 “This network of opaque interdependencies creates a significant challenge which means banks are increasingly drawing on infrastructural expertise as the first step towards securing their internal software. 

“Insights into infrastructure can create a real-time picture of the entire network. Once this level of visibility has been achieved, organisations can confidently rationalise the way that different applications share data within the system. This means they can fit the right security policies to each segmented application, preventing unnecessary or illicit data flows which can create cyber vulnerability.”

 

Related News

Asda Taps HCL Technologies To Help Drive IT Transformation

HCL Technologies (HCL), a leading global technology company, today announced that it has been selected to help drive IT transformation at... Read more »

Ant Financial launches Ant Financial Technology brand

Ant Financial launches Ant Financial Technology, a new brand supporting the growth of financial institutions, at ATEC 2018 in Hangzhou, China. 

HANGZHOU, August 20, 2018... Read more »

First Data Partners with Huifu Payment Ltd

First Data (NYSE: FDC), a global leader in commerce-enabling technology, signed an agreement with Huifu Payment Ltd (Huifu, 01806.HK), a leading third-party payment provider in... Read more »

Engage Hub and Bank of Ireland shortlisted for Engage Award for Best Use of Technology

Cross-channel customer engagement platform, Engage Hub has been shortlisted as a finalist, for the ‘Best Use of Technology... Read more »

UK financial services firms admit spending almost one million pounds on failed or cancelled digital projects

For almost three quarters (73%) of financials services leaders, customers are the main driving force behind their company’s digital transformation, however fear of failure is... Read more »

OP5 is included in the Gartner 2018 Market Guide for Infrastructure Monitoring Tools

“Infrastructure and Operations (I&O) leaders tasked with IT operations transformation must prepare for the challenges of contextualizing data acquired by IT Infrastructure... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App