Proposed new policies from the Securities and Exchange Commission (SEC) could spell changes for how financial services firms handle cybersecurity.
On Feb. 9, the SEC voted to propose cybersecurity risk management policies for registered investment advisers, registered investment companies and business development companies (funds). Next, the proposal will go through a public comment period until May 9.
The Importance of Cybersecurity in Finance
The 2021 X-Force Threat Index found that financial services were the most targeted industry. Manufacturing beat out financial services in the 2022 X-Force Threat Index. However, financial services were solidly in second place with 22.4% of the attacks. In addition, the threat across the industry is not even. 70% of the attacks targeted banks, 16% insurance organizations and 14% other financial organizations.
The drop in ranking shows progress in the industry. The new rules will also result in a major shift in processes for many financial institutions. The 2022 Threat Index points to the rising security standards that many financial institutions have adopted in recent years as key factors for improvement. In addition, the report points to the increase in the adoption of the hybrid cloud as another reason for reduced attacks.
However, when considering the current state of cybersecurity in financial institutions, you must also remember something else. Many financial institutions sped up their digital transformations over the past two years due to the pandemic. They put new processes – both internal and customer-facing – online. So, the risk of attacks became greater with more vulnera ..
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