The Depository Trust & Clearing Corporation’s (DTCC) new white paper, “Cyber Risk – A Global Systemic Threat,” provides global policy makers and the financial community with a series of recommendations to strengthen resiliency from cyber-risks.
The paper’s top recommendation calls for the public and private sectors to increase information sharing and collaboration to develop the most comprehensive and effective tools for promoting cyber-security across the financial system and in critical infrastructures.
“While the industry has made progress in recent years, information sharing remains insufficiently coordinated,” said Michael Leibrock, DTCC Chief Systemic Risk Officer. “The white paper provides a platform for greater industry discussion and understanding around the role collaboration plays in mitigating the potential wide-spread impact of cyber threats.”
The paper also identified other key recommendations for the industry, including:
- Developing, executing and enhancing institutional cyber-resilience to protect core business functions;
- Conducting a global overview of public policy initiatives designed to safeguard critical infrastructure, protect national security and ensure data privacy; and
- Drawing on best practices for recommendations for addressing future cyber-threats drawing on best practices and lessons learned by cyber-defenders.
Cyber Attacks #1 Concern
In addition to its new white paper, DTCC also released the results of its Q3 2014 Systemic Risk Barometer, which focused exclusively on the issue of cyber security. According to the survey, cyber attacks now ranks as the principal concern of the financial services industry, with a record 84% of respondents identifying cyber-risk as one of their top five concerns – an increase of 25 points since the last survey was conducted in March 2014. Furthermore, 33% ranked cyber-attacks as the number one systemic risk to the broader economy, up from 24% from March 2014.
“The growing interconnections and interdependencies in global markets present an opportunity for cyber threats to spread quickly and widely through the global financial system,” said Mark Clancy, DTCC Corporate Information Security Officer and CEO of Soltra. “The systemic risk posed by cyber threats can be most effectively be mitigated by a truly coordinated approach that includes both the private and the public sector across industries and national borders. We must defend collectively so we minimize our challenges individually.”
Given its role in mitigating risk in the financial system, DTCC continues to foster dialogue and discussion on various risks that threaten the sound operation of the marketplace (i.e., systemic, credit, market, operational and liquidity risk as well as physical and technological risks). Over the course of 2014, DTCC has produced and socialized seven white papers on such topics as collateral management, cyber security and settlement.
DTCC White Paper: “Cyber Risk – A Global Systemic Threat”
Q3 2014 DTCC Risk Barometer
DTCC White Papers