Role of Cybersecurity in XBRL
- With IBM estimating that 19% of cyber-attacks are focused on financial services, the financial sector has become the most preferred target for cyber-attacks. Source: https://www.xbrl.org/news/co-ordination-essential-for-cybersecurity/
- Nearly 90% of senior executives have become increasingly worried about cyber-risks over the last year, with 85% of respondents reporting an increase in spending to tackle cybercrime issues. Source:
These stats clearly indicate that financial institutions are grappling with cyber attacks. And the worst part is that these attacks are rarely conducted for financial gain; instead, they are launched to destroy data. This is why organizations and financial institutions need to be aware of these impending threats to safeguard their financial data.
Importance of Cybersecurity in XBRL
- The First Line of Defense
By standing like a wall between the data and attackers, cybersecurity acts like the first, most powerful line of defense for organizations. So realizing the power of cybersecurity is essential.
However, in today’s data-powered world, responding adequately is a challenge. This is why not just ACRA (the Accounting and Corporate Regulatory Authority of Singapore) but regulators worldwide are taking stringent measures to tackle this issue.
What’s It Like Around The World?
To establish France’s position on cybersecurity, François Villeroy de Galhau, Governor of the Bank of France, highlighted how “there has been an increase in cyber-risk regulations, adding to the compliance burden without improving clarity due to their wide variation.”\
In Ghana, Dr. Ernest Addison, the Governor of the Bank of Ghana, said that “the country will soon be publishing bank-specific cybersecurity policies and implement an integrated approach to cyber risk management in line with business objectives.”
The SEC (Securities and Exchange Commission), the regulatory authority of the USA, modified the submission deadline for registered investment companies to mitigate risks from cybersecurity breaches. The changes included the Maintenance of funds on file before filing data for public consumption every quarter. Jay Clayton, the SEC chairman, said that “this revised approach will enable the commission to receive and analyze new data while meaningfully reducing the sensitivity of that data at the time it is transmitted to the commission.”
- Close Vulnerability Gaps
This is another area where cybersecurity lends a hand. Since these attacks are being conducted for destroying data, cybercriminals have adapted sophisticated techniques to gain access to confidential banking and financial information. By leveraging an inside-out approach, this technology helps mitigate risk and protects against new threats in systematic ways.
Sure, the time and costs involved in adopting such a comprehensive approach can be a little heavy on the pocket. However, it is a small price to pay to close security gaps and safeguard organizations against malicious activities.
Cyber Security is NOT Something You Can Take for Granted
The financial and reputational impact a successful cyber attack can have on an organization can be catastrophic. The entire market will lose trust in the company, including potential investors, regulatory authorities, and the existing stakeholders. In addition to this, the clients may hesitate to make any kind of transaction, which can weaken the financial position. This is why proactive investment towards preventive cybersecurity measures should be at the top of your list.
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