A Mayer Brown study titled “The Next Organization” surveyed 197 financial services executives, revealing that cybersecurity is critical to business sustainability. Nearly 80% of financial executives feel unable to plan because of their organization’s vulnerability to cyberattacks.
Financial sector’s cyber concerns
79% of financial institutions and 77% of investment firms cite vulnerability to cyberattacks as a major concern affecting their transformation plans. This concern is justified, as cloud intrusions have increased by 75%, according to CrowdStrike.
cloud computingAI-enhanced data protection plays an important role in transforming operations. However, given strict regulations surrounding financial data, keeping information off-site poses significant risks. For example, Equifax paid more than $1 billion in penalties following a 2017 data breach affecting 150 million consumers.
Raj De, Mayer Brown’s Global Cybersecurity and Data Privacy Practice Leader, notes: “We’re seeing companies, organizations and nations fall victim to increasingly sophisticated cyberattacks. There are a lot of moving parts here, and companies need to navigate the complex and evolving cybersecurity landscape.”
Although she recognizes the need for technological resilience— 69% of financial institution executives and 77% of investment firm executives recognize the importance of strong defenses against cyberattacks and AI advances. There remains a gap between goals and reality. A significant 72% of financial institution executives and 73% of investment firm executives admit that their organizations are struggling to keep pace with rapid developments in AI.
Securing the future of finance
As cybersecurity becomes increasingly important, a Trend Micro study highlights a worrying lack of communication between CISOs and senior executives, with the latter feeling pressured to downplay cybersecurity risks in boardrooms. This, coupled with a cyber insurance market that often fails to cover the costs of breaches, underscores the multifaceted challenge ahead.
AI-powered cyber defenses offer hope. Oliver Yaros, partner at Mayer Brown, says: “AI-powered cybersecurity tools and systems can provide more advanced defenses Data protectionby diluting threats by recognizing patterns, automating processes and highlighting anomalies.
The study found that 77% of investment firms and 69% of financial institutions believe it is necessary to be resilient to cyberattacks and stay ahead of AI advancements. While understanding the threat is critical, action is imperative. Financial firms must address their gaps, recognizing the link between cybersecurity and growth, to avoid future financial impacts.
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