UK Banks Should Be on ‘War Footing’ over Rising Cyber Threats: Regulator

The Bank of England told banks to be ready for war against the mounting threat of crippling cyber attacks.

“I would like our firms to be on a WAR footing: withstand; absorb; recover,” Lyndon Nelson, deputy chief executive of the BOE’s Prudential Regulation Authority, said in a speech on Wednesday.

The PRA expects firms to set out their own tolerances for key services in the form of “clear metrics indicating when a disruption would represent a threat to a firm, to consumers or to financial stability,” Nelson said. Boards should play a key role in developing their operational and cyber risk strategies, he said.

Бизнес партнерство и бизнес-идеи

The BOE has identified cyber attack as a major risk to banks, and has firms tested to determine their resilience. The central bank’s internal watchdog last week said it needs to get ready to handle the ” fast death” of a major bank from a cyber attack or rogue trading.

The central bank and the Financial Conduct Authority will publish a discussion paper setting out the extent of disruption it is prepared to tolerate from an operational incident, Nelson said.

“Banks have been used to safeguarding their financial interests from fraudsters and even bank robbers for decades, but in the case of operational matters the barriers to entry for those who would seek to do harm to the bank are much lower,” he said.

Copyright 2018 Bloomberg.

Was this article valuable?

Yes
No

Thank you! Please tell us what we can do to improve this article.

Submit
No Thanks

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Submit
No Thanks

Here are more articles you may enjoy.

Lloyd’s Index Shows $92B at Risk in North American Cities Each Year

Texas Court: Policy Arbitration Clause not Valid in Dispute With Non-Signatory Party

A Quick (No Really, Super Quick) Insuretech Primer

Damage from June 6 Texas Hailstorm Estimated at $1B

Source