Insight

Tech and cyber risk management

Protect and enable the business with a holistic risk and governance framework

As the velocity and rate of technology change exposes financial institutions to greater risk and regulatory compliance, it also opens new pathways to value creation and opportunity investment. Companies continue to wrestle with balancing the level of risk exposure, meeting regulatory standards, and fortifying the business when pursuing new revenue streams in turbulent economic times.

Forward looking financial services companies have recognized that cyber security risk is not only a technology issue, but few have designed a holistic operational risk framework that enables competitive advantage while securing the enterprise’s most valued assets against cyber attacks and threats. This next generation operational risk management framework will incorporate cyber risk in its foundational elements, and will arm companies with the tactical insight, strategic foresight, and granular analytical visibility needed to minimize cyber risk exposure while maximizing opportunistic action.

So how should financial services companies meet the growing challenges of the digital transformation age with heightened cyber risk?

The paper addresses key areas including:

  • Rethinking the first and second lines of defense with clear ownership and oversight roles between the Chief Information Security Officer (CISO) and the new Cyber Risk Management lead role within Operational Risk
  • Developing an independent risk management oversite functional and assessment framework that incorporates cyber risk appetite and measurable key risk indicators (KRIs) that allow the business to make calculated risk decisions
  • Leveraging intelligent automation to quantify risk of core assets in financial terms
  • Enabling innovation and investment based on calculated risk based on measured cyber risk appetite, putting decisions back in the hands of the business instead of technology function

Technology and cyber risk management

Through a holistic operational risk framework – with cyber security as a foundational component – financial institutions can achieve competitive advantage while securing their most valuable assets against cyber threats.

Related content