Become a better risk manager
Managing risk has become more important than ever for private banks and financial services providers in today’s volatile world.
From a global macro-economic perspective, there are very risky times: On the one hand the US appears to be edging closer to war with North Korea, and no one knows what catastrophe that could unleash.
Meanwhile, the UK and the EU are playing poker over the Brexit negotiations.
And finally evil terrorism continues to plague the world.
The risks facing financial services providers and private banks are arguably greater than ever before.
A particular risk facing private banks and wealth managers is cyber risk. As cyber security threats get increasingly sophisticated, private banks need systems and infrastructures to pre-empt and prevent these attacks.
Reputational damage and conduct risks are also major threats facing private banks and wealth managers.
Approximately 2.9m UK firms suffered cyber security breaches in 2016, at a cost of £29.1bn, according to a Beaming’s study, which was conducted by researchers at Opinium.
In 2016, there were 89 cyber attacks reported to the Financial Conduct Authority (FCA), in comparison to just 5 in 2014, said Nausicaa Delfas, executive director at the FCA, in a speech delivered at the Financial Information Security Network.
According to Delfas, this significant increase indicates more attacks are occurring, but may also suggest better detection and greater reporting by firms.
Given the large amount of assets private banks and wealth managers manage, that makes them a big target.
Knowledge is power when it comes to managing risks in private banking, as it is throughout financial services.