Citing the growing frequency and sophistication of cyber attacks, a record 46% of respondents identified cyber security as the top concern, according to The Depository Trust & Clearing Corporation’s Q1 2015 Systemic Risk Barometer Study.
The cyber security ranking is nearly doubled compared to DTCC’s Systemic Risk Barometer Study in March 2014 where 24% of respondents cited cyber security as the number one threat. Heightened concerns over cyber attacks have led many market participants (73% of respondents) to increase their investment in technology to detect and prevent cyber threats, according to the recent Risk Barometer Study.
Those findings correlate with those in an October 2014 report from Homeland Security Research Corp. (HSRC). The report, “U.S. Cybersecurity Banking, Financial Services, Retail & Payment Market – 2015-2020,″ states the U.S. financial institutions cybersecurity market is the largest and fastest growing private sector cybersecurity market exceeding $77 billion in cumulative 2015-2020 revenues. The HSRC report is based on a survey of financial industry CEOs, CISOs and CIOs.
SIFMA president and CEO, Kenneth E. Bentsen, Jr., noted SIFMA “member firms have invested huge sums of capital into their cyber deterrence and protection programs over the years and have enhanced their efforts to match the growing threat” during recent testimony before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing entitled, “Protecting Critical Infrastructure: How the Financial Sector Addresses Cyber Threats.”
In his comments, Bentsen underscored the importance of a robust partnership between the industry and government as the most effective way to mitigate cyber threats.
“Cyber security threats continue to grow each and every day, as attackers become more sophisticated,” stated Mark Clancy, Managing Director, CISO Technology Risk Management, DTCC and CEO, Soltra. “With cyber security identified as the industry’s top risk, it is critical that we develop and implement solutions that enable the timely sharing of data to prevent incidents as well as to promote faster incident detection and response.”
In November, 2014, Soltra™, the joint venture between The Depository Trust & Clearing Corporation (DTCC) and The Financial Services Information Sharing and Analysis Center (FS-ISAC), announced the general availability of Soltra Edge™ the first industry-driven threat intelligence sharing platform. Soltra Edge is a software solution designed to facilitate the collection of cyber threat intelligence from various sources, including the private sector, industry, government and other entities, and convert it into an industry standard language and provide timely information on which users can decide to take action to better protect their company.
About the DTCC Systemic Risk Barometer
DTCC’s most recent Systemic Risk Barometer was completed in Q1 2015, with responses from over 250 market participants including DTCC clients and other key stakeholders. The survey is conducted twice per year, with feedback requested across market segments including investment managers, banks and broker/dealers.
News release: Cyber Security Cited as Number One Risk to the Financial Markets, According to Most Recent DTCC Study