• About
  • Subscribe
  • Contact
Wednesday, May 7, 2025
    Login
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
No Result
View All Result
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
No Result
View All Result
No Result
View All Result
Home Industry Verticals Finance & Insurance

PodChats for FutureCIO: The operational risks of cyber threats to Asia’s financial sector

Allan Tan by Allan Tan
December 29, 2020
PodChats for FutureCIO: The operational risks of cyber threats to Asia’s financial sector

PodChats for FutureCIO: The operational risks of cyber threats to Asia’s financial sector

Financial services have benefited from concurrent developments in technology, process innovation and regulation. However, these new ways of managing wealth have also raised awareness of increased operational risks to both customers and industry players.

As a practice, operational risk management is relatively young having only evolved as part of a series of papers published by the Basel Committee on Banking Supervision (BCBS).

What is operational risks?

Defined as the risks of loss resulting from inadequate or failed internal processes, people and systems or from external risks, operational risks remain complex and itself contains diverse risk types. Most notable of which are areas around compliance, financial crime, cyber risk, and IT risk.

According to McKinsey, data availability and the potential applications of analytics have created an opportunity to transform operational-risk detection, moving from qualitative, manual controls to data-driven, real-time monitoring.

The dark elements that follow digitization

The COVID-19 pandemic of 2020 may have accelerated the digitization of financial processes but it also attracted even larger attention from cybercriminals.

The July 2020 issue of the World Bank’s Financial Sector’s Cybersecurity: a Regulatory Digest noted that responding to cyber incidents goes beyond an engineering problem and that any business continuity decision cannot be delegated to IT specialists.

The only slightly good news is that the report acknowledged that while financial institutions face a larger number of cyberattacks compared to other industries, the average costs are lower because of the higher investments in IT security.

Still, FutureCIO spoke to Kumar Ritesh, chairman and CEO of Cyfirma, to discuss among other things the operational risks of cyber threats to Asia’s financial sector.

Ritesh acknowledged that while financial institutions are introducing new measures to counter the growing cyberthreat, some efforts centre around retrofitting security into already existing systems – “which is always very difficult to do when you haven’t actually embraced security from day one.”

In defence of the industry, the new threat vectors present today are themselves riding on the same technology innovations introduced only in recent years. Hence it can be argued that financial institutions’ familiarity with the potential threats is limited to what is known at the time.

Securing the core is futile - focus on the edge

He suggested that security should be viewed differently in 2021. Rather than focusing on securing the core, organisations need to look at securing the edge. Why edge?

For security professionals, the traditional perimeter no longer exists – made irrelevant by the adoption of cloud computing, mobility and the Internet of Things (IoT). The borderless connectivity that flowed from these technologies has expanded the attack surface available to cybercriminals.

Ritesh warned that the traditional measurements of success against cyberthreats – number of frauds detected, security alerts issued, incidents managed, discrepancies identified – are not sufficient.

Referring to this approach as event-driven, he suggested to adopt an intelligence-driven approach using trends and insights and apply corrective actions on cyber strategy, policies, procedures, and as well as people and security control.

Privacy will become a key issue in 2021 with new regulations coming. But Ritesh is of the opinion that privacy is not just centred around protecting the identity of customers. He opined that it will be about data privacy – how institutions manage and anonymise this data.

Click on the podcast player for the full details of the dialogue including:

  • What is the state of the operational risk exposures for financial services industries in Asia?
  • Looking at operational risks in 2021, what should be or will be top of mind for us both the security and the compliance heads working on within Asia's financial institutions?
  • What does the next generation of operational risk management for FSI's look like?
  • What must heads of security and CIO's include as KPI's so that they can better manage these operational risks in 2021?
  • How can CIOs and CISOs sell these new approaches to the C-suite?
  • What can financial institutions expect in 2021 to help them better manage operational risks?  
Related:  Stay ahead of cybercriminals with predictive cyber-intelligence
Tags: cyberthreatCYFIRMAoperational riskPodchatsrisk management
Allan Tan

Allan Tan

Allan is Group Editor-in-Chief for CXOCIETY writing for FutureIoT, FutureCIO and FutureCFO. He supports content marketing engagements for CXOCIETY clients, as well as moderates senior-level discussions and speaks at events. Previous Roles He served as Group Editor-in-Chief for Questex Asia concurrent to the Regional Content and Strategy Director role. He was the Director of Technology Practice at Hill+Knowlton in Hong Kong and Director of Client Services at EBA Communications. He also served as Marketing Director for Asia at Hitachi Data Systems and served as Country Sales Manager for HDS’ Philippines. Other sales roles include Encore Computer and First International Computer. He was a Senior Industry Analyst at Dataquest (Gartner Group) covering IT Professional Services for Asia-Pacific. He moved to Hong Kong as a Network Specialist and later MIS Manager at Imagineering/Tech Pacific. He holds a Bachelor of Science in Electronics and Communications Engineering degree and is a certified PICK programmer.

No Result
View All Result

Recent Posts

  • Agentic AI-powered AppSec platform launched for the AI era
  • IDC forecasts GenAI alone will grow at a 59.2% CAGR
  • Dataiku brings new AI capabilities to create and control AI agents
  • Microsoft reveals the rise of a new kind of organisation in the AI era
  • St Luke’s ElderCare enhances data security and user experience with Juniper

Live Poll

Categories

  • Big Data, Analytics & Intelligence
  • Business Applications & Databases
  • Business-IT Alignment
  • Careers
  • Case Studies
  • CISO
  • CISO strategies
  • Cloud, Virtualization, Operating Environments and Middleware
  • Computer, Storage, Networks, Connectivity
  • Corporate Social Responsibility
  • Customer Experience / Engagement
  • Cyber risk management
  • Cyberattacks and data breaches
  • Cybersecurity careers
  • Cybersecurity operations
  • Education
  • Education
  • Finance
  • Finance & Insurance
  • FutureCISO
  • General
  • Governance, Risk and Compliance
  • Government and Public Services
  • Growth Strategies
  • Hospitality & Tourism
  • HR, education and Training
  • Industry Verticals
  • Infrastructure & Platforms
  • Insider threats
  • Latest Stories
  • Logistics & Transportation
  • Management Leadership
  • Manufacturing
  • Media and Telecommunications
  • News Stories
  • Operations
  • Opinion
  • Opinions
  • People
  • Process
  • Remote work
  • Retail & Wholesale
  • Sales & Marketing
  • Security
  • Tactics and Strategies
  • Technology
  • Utilities
  • Videos
  • Vulnerabilities and threats
  • White Papers

Strategic Insights for Chief Information Officers

FutureCIO is about enabling the CIO, his team, the leadership and the enterprise through shared expertise, know-how and experience - through a community of shared interests and goals. It is also about discovering unknown best practices that will help realize new business models.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO

Categories

  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Management Leadership
    • Growth Strategies
    • Finance
    • Operations
    • Sales and Marketing
    • Careers
  • Technology
    • Infrastructure and Platforms
    • Business Applications and Databases
    • Big Data, Analytics and Intelligence
    • Security
  • Industry Verticals
    • Finance and Insurance
    • Manufacturing
    • Logistics and Transportation
    • Retail and Wholesale
    • Hospitality and Tourism
    • Government and Public Services
    • Utilities
    • Media and Telecommunications
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Subscribe