Cyber security focus intensifies
Cyber security is one of the most discussed, but least understood, aspects of modern financial markets. Getting to grips with it should be of critical concern to financial institutions of all stripes.
MCCARTHY Cyber security is ever more important, not just to us as businesses but also to our executives and board. It is a challenge for us as an industry to tighten security while improving the efficiency of the marketplace at the same time.
THORRINGTON With the increase in regulatory requirements – such as the Australian Prudential Regulation Authority’s Prudential Standard CPS 234 – our clients regularly require us to complete extensive security questionnaires. They want a high level of visibility across information-security practices. In response, organisations like ours conduct a number of assurance activities such as GS007 and ASAE 3150 control audits.
These allow clients to be confident in how systems are managed. If we could move other securitisation processes to digital solutions, the same kinds of benefits could be driven across the whole process, providing participants a real understanding of how risk and cyber security are managed.
SICK This is more of a focus now than it has ever been before, as I am responsible for technology and infrastructure. I have asked our head of infrastructure to start looking at cyber security to identify our potential weaknesses. We will probably engage a third-party expert to scrutinise the business.
We are a small business but, as we start to move into other countries, we will become a bigger target by default because there are more entry points to the business. Not only is there risk to the customer, there is also reputational and financial risk. There are also regulatory overlays.
It is not so much a capital-markets issue as a whole-of-business issue. It is not worrying as such, but I certainly want to get on top of it this side of year-end rather than hoping we are never infiltrated.
CAMILLERI I pity larger firms because I just cannot imagine how they can manage their thousands of employees and all the little holes in security. As a small firm, I feel like we are on top of it.
Our clients want to know we have all the assurances, systems and protections in place – and this is where I am happy we are a smaller firm because I cannot imagine how a large company can get on top of all of the issues and maintain daily vigilance.
Cyber security is ever more important, not just to us as a business but also to our executives and board. It is a challenge for us as an industry to tighten security while improving the efficiency of the marketplace at the same time.
CARROLL For term deals it is really an issue for the banks doing the settlement – they must go through the process. Columbus Capital goes through the process for warehouses. However, we have more time and therefore it has not really been an issue for us.
KANARIS Completing the KYC process for new investors and trusts takes time. To the extent a digital solution can reduce the time it takes to complete, this will make the process a lot quicker.
