Cyber attacks now the top operational risk for 60% of financial organisations
Six in ten (60%) organisations in Ireland’s financial services sector say that cyber attacks or system outages are the biggest operational risk to their sector this year.
This is according to a new survey by Ireland’s professional body for compliance professionals, the Compliance Institute, which polled approximately 150 senior compliance experts working primarily in Irish financial services organisations nationwide.
The survey highlighted how significant a threat cyber attacks or system outages have become to the Irish financial services sector. Just 10% of financial firms said supply chain disruption or staff shortages were a key operational threat, while 14% said regulatory changes or uncertainty are the biggest operational risk.
“Cyber attacks can have catastrophic consequences not just for those whom they are perpetrated against, but for the wider public. We only have to look at the devastation that was caused to patients following the 2021 hacking of the HSE to understand the severity of the crimes,” said Michael Kavanagh, CEO of the Compliance Institute. “And although cyberattacks are growing in prevalence and sophistication, there are a myriad of operational risks faced by businesses and financial institutions today. For example, since the outbreak of the current Middle East war, it’s become increasingly clear how disruptive and costly supply chain disruption can be for both businesses and consumers alike. All of these developments serve as a reminder of the importance of being aware of – and ready for – key operational risks.”
While cyber attacks remain a top concern for financial services organisations, almost 90% of respondents said they were either confident or very confident that their firm had measures in place to manage this risk. When asked specifically about cyber risk frameworks and incident response plans, 70% reported being reasonably confident in their organisation’s ability to address potential disruption to operations and supply chains, while 17% said they are very confident. However, 12% were not very confident, and 1% are not confident at all.
Kavanagh added: “Hackers and cyber criminals are continuously improving their practices, constantly finding new ways of stealing material and outsmarting even the most advanced of security systems. AI, a technology which has developed at a rapid pace in recent years, is now being increasingly used by scammers in their attempts to defraud people.
“A recent survey by the Compliance Institute found that an overwhelming majority (97%) of compliance professionals in Ireland’s financial services industry believe that criminals are exploiting AI faster than regulators and firms can respond. Unfortunately, this means that the potential for damage from cyberattacks is rapidly increasing, something that compliance professionals in the financial services sector are acutely aware of. So it’s incumbent on us all – consumers, businesses and regulators alike – to keep up to speed on, and to be in a position to withstand, the growing incidence and severity of cyber attacks.”
TechCentral Reporters
Subscribers 0
Fans 0
Followers 0
Followers