Here is the article rewritten in Markdown format:
Global Financial System Under Threat: Urgent Need for Collective Action
The global financial system is facing an unprecedented threat from cyber attacks, with the rapid evolution of technology and innovation creating a perfect storm for malicious actors to exploit vulnerabilities. The Carnegie Endowment for International Peace has warned that unless dedicated action is taken, the system will become increasingly vulnerable to disruption and destruction.
International Strategy Needed
In a report released in November 2020, the Carnegie Institute outlined an international strategy to better protect the global financial system against cyber threats. The report emphasized the need for:
- Greater clarity on roles and responsibilities
- International collaboration
- Reducing fragmentation
- Leveraging resources effectively
Current Fragmented Approach
The current fragmented approach among stakeholders is hindering the effectiveness of efforts to harden defenses and regulate the sector. Financial authorities, national security agencies, and industry executives are operating in silos, with each focusing on their respective mandates without considering the broader implications for the global financial system.
Recommendations for International Cooperation
The report recommends:
- Governments developing a basic framework for supervising cyber risk management at financial institutions
- Sharing information on threats
- Creating financial computer emergency response teams (CERTs)
- Making clear how governments will apply international law to cyberspace and strengthening norms to protect the integrity of the financial system
Building Capacity
To build capacity, the report suggests:
- Investing in initiatives to build the cybersecurity workforce
- Expanding the financial sector’s cybersecurity capacity
- Safeguarding gains in financial inclusion
- Creating a network of experts to focus specifically on cybersecurity in Africa, where many countries are experiencing a significant transformation of their financial sectors
Time for Collective Action
The time has come for the international community to come together to address this urgent challenge. A well-thought-out strategy like the one outlined above provides a blueprint for turning words into action and ensuring the continued stability and security of the global financial system.
About the Author
Tim Maurer is the director of the Cyber Policy Initiative and a senior fellow in the Carnegie Institute of International Peace’s Technology and International Affairs Program.