EU Regulators Emphasize Cyber Risk in Joint Report
The committee comprises the European Securities and Markets Authority (Esma), European Banking Agency, and the European Insurance and Occupational Pensions Authority. In the Joint Committee Report on Risks and Vulnerabilities in the EU Financial System, the JCESA highlights a number of areas where firms must focus their attention. These include regularly checking and updating systems through proper maintenance, which it says does not happen to a sufficient standard, as well as provisioning for cyber security appropriately in annual budgets. Moreover, the joint committee says, gauging cyber risk should be built into standard risk-assessement frameworks, along with continuing to measure the overall resilience of an institution and its business continuity plans.
"Cyber and IT risks should be regarded as important components of operational risk, and institutions should consider holding capital against them," the report states. "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. The evolving nature of cyber threats increases the need for sound management practices and a strong, professional risk culture in financial institutions which can react to new threats and deliver appropriate levels of employee awareness about new risks."
The joint committee is the latest regulatory entity to warn against the risk from cyber threats. Recently, the Bank of England reported on a simulation where the financial infrastructure of the UK came under attack, following on from similar events held in the US through the Quantum Dawn series of exercises.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
MarketAxess builds strategy around X-Pro
MarketAxess profits were down in Q1, but revenues were up and automation volume hit a record $94 billion.
Canada’s triparty repo launch aims to fill C$60bn void
Test trades on TMX/Clearstream platform represent “quantum leap” for creaking funding markets.
People Moves: NorQuant, Tradition, Duco, HKEx, SimCorp, Hazeltree, Xceptor, Broadridge, and more
A look at the past month’s people moves in the capital markets technology and data space.
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
This Week: BBH, AllianceBernstein add data solutions, Deutsche Börse-Nodal Exchange, and more
A summary of some of the latest financial technology news.
Consortium backs BGC’s effort to challenge CME
Banks and market makers—including BofA, Citi, Goldman, Jump and Tower—will have a 26% stake in FMX.
Symphony boosts Cloud9 voice offerings with AI
The messaging and collaboration platform builds on Cloud9’s capabilities as it embraces the AI wave in what CEO Brad Levy calls “incremental” steps.
Can exchanges leverage new tech to claw back ETF share from RFQ platforms?
Systematic trading strategies and proliferating data are bringing efficiency to an otherwise-fragmented European ETF market.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
- Waters Wrap: GenAI and rising tides