Share page with AddThis

News

European regulators warn of rising cyber security risks

Cyber padlockEurope’s financial institutions have been urged by regulators to makes themselves more resilient to a growing risk of cyber security that has been intensified by war and has stalled the economic recovery from Covid.A joint report issued by the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority highlighted “environmental risks and risks stemming from digitalisation” as additional vulnerabilities for the financial system that have built up over time and have been exacerbated by the Russian invasion of Ukraine.

The European supervisory authorities’ (ESA’s) report calls for national regulators, financial institutions and market participants to “strengthen their cyber resilience” in the face of an “elevated level and frequency” of cyber incidents.

“Geopolitical tensions are playing an increasing role in the technological and digital space, with impacts felt across geographies and sectors, and heightened cyber risks following the Russian invasion in Ukraine,” states the report.

“Moreover, the COVID-19 pandemic contributed to a rapid increase in connectivity and further reliance on technology highlighting the importance of preparedness and response in the event of a crossborder cyber-incident.”

Given this context, the ESAs have welcomed the European Systemic Risk Board’s proposal to establish a pan-European cyber incident coordination framework for regulators in the event of a major cross-border cyber incident.

In addition, the report also references ongoing legislative developments in terms of Digital Operational Resilience Act which is designed to improve cyber security practices among Europe’s financial institutions and entered the trilogue phase2 stage in January 2022.

©2022 fundsTech

Most read features

Cryptocurrencies: Solving crypto’s sustainability problem

Cryptocurrencies like bitcoin have a huge carbon footprint but, as Nicholas Pratt discovers, environmentally friendly alternatives exist.

Roundtable: The digital transformation opportunity

The funds industry is looking at adopting new types of technology, from automation to ESG reporting, blockchain and tokenisation. A FundsTech roundtable in March explored how these will revolutionise the sector.

Proxy voting: Making every vote count

With stewardship more important than ever and digital technology to the fore, surely it is time to solve the problem of proxy voting? Nicholas Pratt investigates.

Interview: Rise of the robo-adviser

FundsTech talks to Nutmeg’s CTO, Matt Gatrell, about the role of technology in its online offering.

Regulation: Panel calls for simplicity in ESG reporting

The industry accepts the need for more rigour in ESG fund reporting, but the work will be pointless if investors don’t understand the end result. Nicholas Pratt reports.

Sponsored Profiles

Data consolidation takes centre stage in asset management M&A

MergersConsolidation between asset management firms is overwhelmingly expected to increase. Operational challenges remain thanks to legacy systems. But in a recent...

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...

Sponsored profile: A question of trust

AcrobatsAs more firms adopt agile software development practices, Petra Roche of Metrosoft explains why trust is so important in making agility work.

Sponsored feature: Compliance and the case for agility

CheetahFundsTech talks to Janusz Lorenc, CEO of Metrosoft, about asset managers’ approach to compliance risk and the case for agile software development.