From: Financial News
Anish Puaar
European regulators have called on financial institutions to bolster their defences against cyber-attacks and recommend that firms put money aside to deal with potential incidents.
The suggestion is made in a joint report on financial market risks from the three European supervisory authorities — the European Securities and Markets Authority, the European Banking Authority And the European Insurance and Occupational Pensions Authority — that were established after the financial crisis.
According to the paper: “Concerns are growing over the increasing persistence, intensity and sophistication of information technology related operational risks, including risks of cyber incidents and/or malicious attacks to as well as accidental failures of IT systems.”
It added: “Cyber and IT risks should be regarded as important components of operational risks, and institutions should consider holding capital against them. Nevertheless, holding capital should not be regarded as a substitute for the sound management of operational risk, such as sound IT governance and management, mature IT processes, IT quality assurance, and effective IT security management.”
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