Best ways to boost cyber security and risk management practices?
Do industry collaborations seem to be the best way to combat the emergence of new methods of financial crime.
Do industry collaborations seem to be the best way to combat the emergence of new methods of financial crime that have created challenges for regulators, institutions and technology firms alike.
Adopting appropriate security measures and systems as well greater industry collaboration have become crucial to ensuring clients’ data protection and trust.
To ensure the same, financial institutions now require significant improvements in their overall IT infrastructures. Moreover, new and increasingly complex financial crimes require advanced anti money laundering (AML) solutions, prompting private banks to build stronger technology strategies.
In December 2016, the Monetary Authority of Singapore (MAS) and the Financial Services Sharing and Analysis Center (FS-ISAC) announced plans to launch a new centre dedicated to cyber security risk management. The launch, which is anticipated in mid 2017, is unsurprising given that cybercrime is a key concern among banks worldwide.
To date, global national bodies, regulators and governments have been active in addressing the threat of cybercrime, which is estimated to cost the global economy US$560bn a year. For instance, a UK-based trade association of the investment industry, the Wealth Management Association, collaborated with the National Crime Agency to support wealth managers in preventing cybercrime. During 2015 the two organisations created documents to educate wealth management firms on cyber threat.
A number of IT companies also provide solutions to track sophisticated financial crime including threat analytics, managed security services, cyber defence and digital transformation advice to offer full protection of an organisation’s digital assets.
Solutions are also emerging to address the complete client lifecycle management across different business lines.
Risk and data management is an area that private banks particularly have traditionally wanted to keep in-house. However, those banks that continue to have legacy IT infrastructure will be exposing themselves to greater vulnerability.