The cyber risk threat facing private banks
The cyber risk threat is proving to be a wake-up call for private banks and wealth managers.
In a wake-up call for private banks and wealth managers, a recent report revealed half of UK companies expect to be entirely operational 48 hours after a large-scale cyber security breach – when the actual recovery time can take months.
The report was published by insurance broker Lockton, which said a survey of senior decision-makers found only 2% of UK businesses think a breach will affect them for more than 10 days.
Private banks and wealth managers will increasingly be a target for cyberattacks, particularly due to the amount of large amount of assets they manage.
As Jay Patel, insurance analyst at Timetric’s Insurance Intelligence Center points out: “As greater quantities of data are added to cloud systems, businesses become more vulnerable to cyber-attacks that look to steal commercially sensitive information or cause disruption to operating systems.”
Patel points out that the main concern of many IT and cyber security experts is that cloud computing presents an increased number of security risks.
He says: “The increasing amounts of data stored on the cloud by businesses means that there is significant liability exposure to data breaches if their cloud systems are compromised. Furthermore, as key operational systems also migrate to the cloud, business interruption exposure could significantly increase too, in the event of an attack.
“Whereas beforehand an attack on one unit of office of a business could be isolated, the move to integrated cloud storage makes the potential interruption arising from an attack much larger.”
Overall, the cyber risk threat for private banks and wealth managers around the world is huge, and it cannot be underplayed.