Slovenia’s Finance Industry Under Siege from Escalating Cybercrime Threat
The financial sector in Slovenia is facing a significant challenge with a growing concern of cybercrime, which has resulted in a staggering 65% increase in attacks compared to other industries in 2016.
The Scale of the Problem
According to estimates by the World Bank Group, there was a 29% rise in cyber attacks from the previous year. This alarming trend highlights the need for authorities and financial institutions to take immediate action to address the rising threat of cyber risk.
Existing Regulatory Frameworks
To combat this growing concern, the World Bank Group has published two reports aimed at advancing coordination between financial sector authorities and other agencies dealing with cyber risk and cybersecurity.
Financial Sector’s Cybersecurity Regulatory Digest
The first report takes stock of existing regulatory and supervisory practices, including:
- Cybersecurity laws
- Regulations
- Guidelines
- Significant documents on cybersecurity for the financial sector
Financial Sector’s Cybersecurity Regulation and Supervision
The second paper focuses on best practices from around the world to tackle cyber risk, including:
- Establishing coordination protocols between financial sector authorities and other agencies involved in regulating and supervising cyber-risk
- Voluntary and anonymous information-sharing of cyber incidents among market participants
- Risk and incident taxonomies developed by regulators
- Mandatory reporting to estimate the actual or potential impact on the continuity of essential services
Best Practices from Leading Jurisdictions
Several leading jurisdictions are strengthening their regulatory and supervisory practices to deal with the growing threat of cybercrime. These best practices include:
- Establishing coordination protocols between financial sector authorities and other agencies involved in regulating and supervising cyber-risk
- Voluntary and anonymous information-sharing of cyber incidents among market participants
- Risk and incident taxonomies developed by regulators
- Mandatory reporting to estimate the actual or potential impact on the continuity of essential services
Additionally, some jurisdictions require:
- Financial institutions to develop an ICT strategy and risk management framework, including incident response plans with a clear chain of command to take necessary business decisions
- The appointment of an information security officer
- Regular testing and simulations of incident response capabilities
Conclusion
Despite these efforts, more work is needed to combat the growing threat of cybercrime in Slovenia’s finance industry. The World Bank Group’s reports emphasize the need for enhanced cooperation between authorities and agencies to effectively address this pressing issue.
To mitigate the risk of cyber attacks, it is essential that financial institutions and regulatory bodies work together to develop effective cybersecurity measures and share information on best practices. By doing so, we can protect the integrity of the financial sector and ensure the continued trust of customers in Slovenia’s finance industry.