Financial Crime World

Financial Institutions in South Georgia and South Sandwich Islands Urged to Strengthen Cybersecurity Measures Amid Rising Risks

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As the global digital landscape continues to evolve, financial institutions in South Georgia and South Sandwich Islands are facing increasing pressure to develop robust internal controls to mitigate cyber risks. A recent KPMG survey revealed that 84% of senior risk executives predict that cybersecurity risks will worsen in 2022, while 74% expect compliance risks to rise in tandem.

The Growing Concern

In response to the growing concern, investors, regulators, and other stakeholders are demanding greater transparency from financial institutions about their management of evolving cyber threats. Audit committees, which oversee the entity’s cybersecurity risks, play a crucial role in helping organizations understand the impact on their financial reporting and re-evaluating their privacy and security standards.

Key Questions to Consider

Some key questions that may be considered by financial institutions include:

  • Does the institution have a data governance framework in place to manage data collection, storage, management, and use?
  • Which business leaders are responsible for cybersecurity and privacy across the enterprise?
  • How does the board ensure assignment, coordination, and accountability for the company’s cybersecurity and data privacy policies?

Preparation is Key

Moreover, it is essential that financial institutions develop plans for responding to a data breach and be prepared to pay ransom in the event of a ransomware attack. The institution must also know how to locate and prioritize data for recovery and detail responsibilities for partner, customer, and regulator notification.

Recommendations from KPMG

According to Matt Miller, a KPMG principal specializing in cybersecurity risk issues, weak access management and insufficient authentication controls continue to provide an opening for cyber attackers. Therefore, financial institutions are urged to take immediate action to strengthen their “customer and enterprise identity and access management programs” to prevent account-takeover threats.

Conclusion

Without swift action, financial institutions in South Georgia and South Sandwich Islands will struggle to ensure appropriate prevention against the latest account-takeover threats. It is crucial for these institutions to prioritize cybersecurity measures and take proactive steps to mitigate risks.