It can also be defined as the actual collection, standardization, and analysis of data generated by users, applications, and structures that affect a company's IT security and risk position.
Every day, information flows in organizations to help senior management make sound decisions. Various technologies are used to connect the various stakeholders (employees, customers, and contractors).
However, technological infrastructure can cause serious security problems. The potential areas of intrusion are limitless. Security experts and business leaders are attempting to answer the question: Is it possible to have robust security in an increasingly interconnected environment?
Though the answer is yes, it requires a radical shift in processes and practices throughout the financial services sector. The emphasis is not solely on IT. Strong security promotes a positive customer experience.
Cybercrime and Business Profitability
Financial institutions are particularly vulnerable because they are perceived as an easy target for cybercriminals. According to an IBM survey, ""financial markets, insurance, computer and professional services account for more than 40% of all security incidents globally.""
Losses from cybercrime in other sectors may be due to industrial intelligence and intellectual property fraud, but online fraud is a possibility in banking.
Any intellectual property and industrial intelligence fraud could result in lower shareholder value, business closure, and net financial losses. These are the issues affecting the global financial sector, not only because the root causes are unknown or the disruption to customers is immediate, but also because they can result in significant financial loss.
According to Andrew Haldane, the Bank of England's Financial Stability Director, """"cyber-risk has become a more pressing concern than economic depression and the Eurozone crisis, as it is a rapidly rising area of risk with potentially systemic implications"""".
Recognizing the gravity of the security threat is only the beginning. Financial institutions must develop an in-depth security intelligence strategy that will provide them with insight into perceived threats.
Financial institutions use cutting-edge analytics to gain an understanding of:
The types of attacks that are taking place.
The most likely source of the attacks.
Cyber criminals' use of technology.
Weak points that may be exploited in the future.
""There is no other single issue that unites the interests of so many people at senior levels of banks,"" said Michael Davison, IBM's Banking and Financial Markets. It brings together technology, the CFO, security, and compliance. However, cybersecurity is also critical for those in charge of lines of business and P&Ls. As a result, it is properly placed on the Board's agenda. However, there is still work to be done to educate Boards on the importance of an effective response to a rapidly changing environment."" ""
To strike a balance between the required innovation and the associated risk, financial institutions must implement the following practices:
Create a risk-averse culture.
An organizational transformation with a focus on zero tolerance for security failures is required.
To identify and resolve issues, an initiative encompassing the organizational hierarchy is required to execute smart analytics and automated response competencies.
Protect the Working Environment
A centralized authority must examine the functions of distinct devices, and the vast amount of information in an institution must be categorized, tagged with its risk profile, and distributed to the appropriate personnel.
Design of Security
The biggest issue with IT systems and unnecessary costs stems from performing services first and worrying about security later. Security must be built into the application from the beginning.
Maintain a Secure Environment
If the system is secure, security personnel can monitor every program that is running to ensure it is active and operating at peak efficiency.
Control the Network
Organizations that route approved data through controlled entry points will be better able to detect and separate malware.
Cloud Computing Security
To thrive in a cloud environment, businesses must have the technology to operate in a secluded environment and track potential issues.
The security strategy of an organization must include its vendors, and efforts must be made to establish best practices among the vendors.
Financial institutions have been a popular target for malware attacks. Several factors are influencing the financial sector. The global financial stakeholders have not overlooked the direct link between the breach of several personally identifiable information (PII) and profitability. As a result, several global security projects have been implemented.
""""Man-in-the-Browser"""" intrusions are a dangerous type of malware for online financial transactions. It occurs when a malicious program infects a web browser. The program modifies the user's activities and, in some cases, can initiate actions on its own. It could lead to online theft.
Financial institutions that can transform themselves radically on a fundamental level will be safe.
The goal of enterprise security may initially focus on IT structures; however, it must be extended from technology personnel and their systems to each individual within the organization, as well as all stakeholders doing business with it.
Financial firms must understand the data they have, which must be made available to the system so that they can compare and develop a true understanding of the actual threats and contingencies that may threaten the business."""