Cyber Resilience

Topics that Keep CROs Awake at Night – Part 3: Dealing with Cyber Attacks

As the digital landscape evolves, so does the threat of cyberattacks. Right now, the ECB conducts a critical cyber resilience stress test on 109 banks, probing their recovery capabilities post-attack.

According to the “Center for Strategic and International Studies” the global economy loses nearly $600 billion to cybercrime each year, representing almost one percent of the global GDP. With the rise of AI, this trend will likely continue to intensify in the upcoming years. The financial industry is one of the sectors that is particularly at risk.

It’s not surprising that the ECB is conducting a crucial exercise aimed at evaluating how banks can handle and rebound from cyberattacks, a growing concern in today’s interconnected financial sector.

The Regulator’s decision to focus on recovery capabilities rather than just prevention reflects a realistic approach to cybersecurity: it’s not about if a cyberattack will happen, but how quickly and effectively a bank can respond when it does. This shift emphasizes the need for robust emergency procedures, well-crafted contingency plans, and the ability to restore normal operations swiftly.

 

Methodolgy of the ECB Stress Test

The banks are undergoing a rigorous scrutiny involving a detailed questionnaire to assess their preparedness against potential cyber threats. This initiative requires banks to provide substantial evidence supporting their cybersecurity measures.

The focus of the assessment is a hypothetical scenario involving an incident that targets the core banking system and associated databases—critical components that manage the primary financial operations and information of the banks. This proactive approach is designed to identify vulnerabilities in the most business-critical systems within the banks.

Banks will follow a two-tier process in this cybersecurity evaluation. Initially, all included institutions are required to complete the questionnaire and furnish the necessary evidence within two months. Additionally, they are required to submit a detailed report on potential cyber incidents to the ECB. This methodical assessment aims to enhance the resilience of the financial sector against sophisticated cyber threats.

 

SREP Considerations

The cyber resilience stress test results will significantly influence the Supervisory Review and Evaluation Process (SREP), affecting banks’ overall risk profiles and regulatory compliance statuses. Banks that demonstrate effective recovery processes may see a favorable assessment, highlighting the importance of advanced preparation.

Cyber Security

Security Measures – What We Do

Security Measures – What We Do

Aryza itself provides direct encryption during data storage and during data transfer. Furthermore, we offer you encrypted backups of your data to optimally secure them, so that you can avoid data loss and be completely satisfied. These are carried out under strict security precautions:

  • Tasks and responsibilities are separated as much as possible.
  • The management of access rights is organized in such a way that unauthorized access to your data is prevented.
  • Access to premises containing classified information is only allowed on the principle of “need to know”.
  • The management of user rights is also organized, and user and access rights are regularly reviewed and strictly logged.
  • Changes in staff are handled with a tool that ensures all relevant individuals are informed of the necessary actions.
  • Classified information is separated from public information and access rights are granted based on the principle of least privilege.
  • Administrative measures are taken to protect classified information when technical solutions are not available.
  • All employees have committed to complying with the rules of the GDPR and banking secrecy as part of their employment contracts.
  • A security concept for the use of the building has been created.
  • An access control system and authorization management with electronic keys are set up to protect against intruders and break-ins.

The Road Ahead

As cyber threats continue to evolve, the ECB’s stress test serves as a crucial checkpoint for banks to assess and enhance their cybersecurity measures. By focusing on recovery processes, banks can ensure not just compliance, but also resilience against the inevitable cyber challenges ahead.


Strengthen Your Cyber Resilience with Aryza

At Aryza, we specialize in providing outsourced solutions that prepare banks for the rigorous demands of cybersecurity in the financial sector. Our approach ensures not only compliance but also leadership in cybersecurity.

In the event of outsourcing, it’s crucial to establish early contact and coordination with both internal and external IT service providers. Aryza supports this process fully, ensuring seamless integration and robust cybersecurity measures.

If you’re interested in how we can tailor our services to enhance your bank’s cyber resilience, get in touch with us today.