Strengthening Cyber Resilience in the Financial Sector

A recent report by the Carnegie Endowment for International Peace emphasizes the need for a comprehensive strategy to address the threat of cyberattacks in the financial sector. The strategy is based on four key principles:

Principles for Strengthening Cyber Resilience

Greater Clarity about Roles and Responsibilities: Establish effective domestic relationships among financial authorities, law enforcement, diplomats, other relevant government actors, and industry to ensure a coordinated response to cyber threats.
International Collaboration: International cooperation is essential given the scale of the threat and the globally interdependent nature of the financial system.
Reducing Fragmentation: Reducing fragmentation will free up capacity to tackle the problem, as many initiatives are underway to better protect financial institutions but remain siloed.
Protecting the International Financial System: Protecting the international financial system can serve as a model for other sectors.

Recommended Actions to Strengthen Cyber Resilience

To enhance cyber resilience in the financial sector, the report recommends the following actions:

Developing a Basic Framework for Supervising Cyber Risk Management

Establish a clear framework for supervising cyber risk management at financial institutions

Strengthen security by sharing information on threats and creating financial computer emergency response teams (CERTs)

Prioritizing Resilience against Data and Algorithm Attacks

Prioritize increasing the financial sector’s resilience against attacks targeting data and algorithms

Establishing Entities for Threat Assessment and Coordination

Establish entities to assist in assessing threats and coordinating responses

Building Capacity through Training and Hiring

Build capacity through training and hiring talented people to strengthen the cybersecurity workforce