Financial Crime World

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Cyber Resilience in Financial Market Infrastructures: A System-Wide Approach

Financial market infrastructures are increasingly vulnerable to cyberattacks, which can have severe consequences on global economies. In this context, a system-wide approach to enhance cyber resilience is crucial.

The Challenges of New Technologies

New technologies, such as artificial intelligence (AI) and quantum computing, pose significant challenges for financial market infrastructures.

  • Sophisticated Cyberattacks: AI can be used to launch sophisticated cyberattacks, which can compromise the security of financial institutions.
  • Post-Quantum Cryptography: Quantum computing may break current cryptography algorithms, requiring post-quantum cryptography environments to protect sensitive information.

Identifying Weaknesses to Mitigate Cyber Risks

Regular assessments and exercises help identify potential weaknesses in financial market infrastructures.

  • Cyber Resilience Surveys: The Eurosystem conducts regular cyber resilience surveys of financial market infrastructures, which show a correlation between good governance and strong cyber resilience.
  • Red-Teaming Exercises: Stress tests and red-teaming exercises like TIBER-EU help identify and close potential gaps and weaknesses in cybersecurity measures.

Reporting and Disclosure of Cyber Incidents

Prompt reporting and disclosure of cyber incidents are essential for containing and mitigating the impact of a cyberattack.

  • Incident Response Plans: Entities should have precise plans for disclosing incidents to stakeholders and communicating with the public.
  • Transparency: Transparency is key in managing the reputation of financial institutions during a cyber incident.

A System-Wide Approach to Cybersecurity

Cybersecurity should be a common good that is addressed collectively by all stakeholders.

  • Collaboration: Central banks, authorities, and industry players work together at an international level to address cyber risk.
  • Weakest Link: The financial system is only as strong as its weakest link, emphasizing the need for cybersecurity to be a priority for all.