Indira B.’s Post

Financial institutions are rapidly adopting emerging technologies, necessitating proactive measures to mitigate growing cyber risks. This is a must-read report irrespective of where you or your organization are on the continuum of adopting emerging technologies.   Key Findings: - Cloud computing, applied AI, next-gen software development, and digital identity are prioritized by most institutions due to their proven value and maturity. - Despite the benefits, emerging technologies introduce cyber risks, surpassing current cybersecurity capabilities. - Critical cybersecurity capabilities such as third-party management and privileged access management are lacking. - Financial institutions need to assess their technology priorities, aligning them with cybersecurity capabilities and investing in metrics, reporting, talent, and regulatory compliance. - Emerging technologies like quantum computing, future mobility, and immersive reality are not yet widely adopted due to longer adoption timelines. - Cloud migration, applied AI, next-gen software development, and trust architecture each bring unique risks requiring robust cybersecurity measures. - Companies acknowledge the need for increased cybersecurity spending and talent to address capability gaps.   Implications: - Compliance and defense against threats are driving cybersecurity capability maturity. - Financial institutions recognize the necessity to increase cybersecurity spending to address emerging risks adequately. - Talent acquisition and upskilling are crucial for closing cybersecurity capability gaps.   As financial institutions integrate emerging technologies, they must enhance their cybersecurity capabilities to effectively mitigate associated risks. Prioritizing investments in critical cybersecurity areas and aligning technology priorities with security measures will be essential for future-proofing against evolving cyber threats. #emergingtech #financialinstitutions #cyberrisk #riskmanagement McKinsey & Company

BY MCKINSEY & COMPANY: The cyber clock is ticking: Derisking emerging technologies in financial services! As financial institutions actively adopt emerging technologies, they should act now to future-proof themselves against growing cyber risks. pace with a rapidly evolving technology landscape, they should consider not only what benefits new emerging technologies offer but also what risks they introduce. To understand how companies are grappling with the best ways to use and protect the technologies of today and tomorrow, McKinsey partnered with the Institute of International Finance (IIF) to survey financial institutions around the world regarding their current and planned usage of ten key emerging technologies. (For details on research methodology, including the short-listing of top technology trends, based on global industry trends, see “Appendix: Approach and methodology.”) How are companies approaching emerging technologies? What emerging technologies are they adopting? How do they plan to secure and mitigate the associated cyber risks? What cybersecurity capabilities will be needed to successfully adopt and secure new technologies? Share Sidebar Appendix: Approach and methodology Of the emerging technologies included in the survey (see sidebar “Ten emerging technologies”), a majority of financial-services companies indicated that they are prioritizing adoption of and investment in four of them: cloud and edge computing, applied AI, next-gen software development, and digital identity and trust architecture (Exhibit 1). All four technologies are likely to see quicker adoption than advanced connectivity, future mobility, immersive reality, quantum, machine learning, and Web3. This is perhaps because of their widespread applicability and maturity, as well as their proven, value-based use cases for financial-services companies. Exhibit 1 We strive to provide individuals with disabilities equal access to our website. If you would like information about this content we will be happy to work with you. Please email us at: McKinsey_Website_Accessibility@mckinsey.com Share Sidebar Ten emerging technologies While these technologies can provide exponential benefits, they can also bring cyber risks that companies must mitigate using their existing cybersecurity capabilities. The research shows that current capabilities are falling short of addressing these risks. Most survey respondents also recognize the need to strengthen critical cybersecurity capabilities, including third-party or supply chain management and privileged access management (PAM). As companies continue to increase their reliance on newer technologies, they must ensure they have thought through and implemented the necessary risk management capabilities. Otherwise, they may find the risks outweigh the benefits. As the technology ..... https://lnkd.in/eCj8sHx2

🤖 𝘾𝙮𝙗𝙚𝙧 𝙘𝙡𝙤𝙘𝙠 𝙞𝙨 𝙩𝙞𝙘𝙠𝙞𝙣𝙜: 𝘿𝙚𝙧𝙞𝙨𝙠𝙞𝙣𝙜 𝙚𝙢𝙚𝙧𝙜𝙞𝙣𝙜 𝙩𝙚𝙘𝙝𝙣𝙤𝙡𝙤𝙜𝙞𝙚𝙨 𝙞𝙣 𝙛𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙨𝙚𝙧𝙫𝙞𝙘𝙚𝙨 💰 As financial-services companies around the world race to keep pace with a rapidly evolving #technology landscape, they should consider not only what benefits new #emergingtechnologies offer but also what #risks they introduce. 𝙇𝙖𝙣𝙙𝙨𝙘𝙖𝙥𝙚 🌆 #Cybersecurity is a major concern for #financialservices companies, especially as they adopt new emerging technologies. While these technologies can offer exponential benefits, they can also bring #cyberrisks that companies must mitigate. McKinsey & Company's and the Institue of International Finance's (IFF) research shows that current capabilities are falling short of addressing these risks. To derisk, companies must ensure they have thought through and implemented the necessary #riskmanagement capabilities. To prioritize their adoption of emerging technologies, companies indicate considering #cloud and #edgecomputing, applied #AI, next-gen #softwaredevelopment, and #digitalidentity and #trust architecture. These four technologies are likely to see quicker adoption than others. 𝘾𝙖𝙡𝙡 𝙩𝙤 𝙖𝙘𝙩𝙞𝙤𝙣 🎯 However, companies must ensure their technology priorities are aligned with their security capabilities and that they are investing in the right technologies and cybersecurity capabilities. It's also important for companies to have the right #metrics and #reporting in place to accurately and confidently measure against their #riskappetite, provide #transparency to #regulators and #executives, and identify strengths and weaknesses. Additionally, having the right #talent to close capability gaps is crucial, not just to maintain existing capabilities now but to support future maturity and #technology expansions. As the cyber clock ticks, financial-services companies must prioritize derisking emerging technologies to ensure they can reap the benefits while mitigating the risks.

Is your company prioritising security? 🔐 As the financial sector embraces innovations like AI, blockchain, and quantum computing, cybersecurity challenges have been growing exponentially. I had a quick read through McKinsey’s recent analysis which underlines the urgency of implementing systems to manage these risks effectively. Key insights include: Integrated Security: Cybersecurity must be woven into the development lifecycle of new technologies, ensuring risks are mitigated from the ground up. C-Suite Collaboration: Strong alignment among business leaders is critical to balance innovation with security. Dynamic Resilience: Adaptive and proactive defenses are essential to protect against evolving threats. I’ve definitely seen an increase over the past year of my clients looking to prioritise cybersecurity risk not only to prevent financial losses but also reputational damage. Those that succeed will unlock innovation while building trust with customers and stakeholders. I’m looking to speak with engineers within GRC, Vulnerability Management, AppSec, Incident response and more. So, if you’re looking for a new role please get in touch 😊 Full article here: https://lnkd.in/eRjqZZB2

Worried about DORA compliance? Panaseer is the cybersecurity solution that's turning heads. 1 ) Quantifiable Governance Their Cybersecurity Controls score provides granular metrics on risk appetite and tolerance thresholds, enabling data-driven prioritization of non-compliant areas. 2) Policy-as-Code Risk Framework Panaseer codifies your policies into measurable controls, creating a unified data model across all lines of defense with full audit trails. 3) Asset Intelligence at Scale Get continuous discovery and classification, even in environments with conflicting CMDBs or incomplete data sources. 4) Adaptive Control Validation Implement granular policy checks with configurable compliance thresholds.  Critical assets can be assigned more stringent parameters, aligning with DORA's risk-based approach. 5) Proactive Anomaly Detection Leverage behavioral analytics to identify control failures and ICT anomalies.  Customizable alert thresholds based on asset criticality, type, and business context minimize alert fatigue. 6) Contextual Incident Response: View historical control status data for every asset for crucial context during incidents.  Quickly determine if appropriate controls were in place on affected systems, accelerating root cause analysis and recovery. Investing in cybersecurity innovation is crucial. Download the white paper on Panaseer's use cases for DORA: https://lnkd.in/etpTZpn4 #DORA #CybersecurityCompliance #FinTech 🔔 Follow Evolution Equity Partners for ongoing insights on Cybersecurity and Venture Capital.

Digital Growth Summit 2024 – Tuesday October 8th, the first Digital Growth Summit was held at the High Tech Campus in Eindhoven. Erik Beulen, who teaches Information Management at The University of Manchester, set the scene by explaining that digital growth starts with adopting new business models. Aart Rupert, Chief Digital Officer at Damen and the 2023 CIO of the Year, explained how he and his team are driving digital transformation in conjunction with business representatives. Furthermore, Bouke Hoving, Global CIO of Wholesale Banking at ING and the 2017 CIO of the Year, shared the implementation of the Target Operating Model powering the digital transformation at ING. These are great case studies – lots of learnings. Additionally, Esther Schagen-van Luit, Chief Security Advisor at Microsoft, and Suzanne R. MBA. (Rijnbergen), Managing Director of Cyber Resilience at Accenture, discussed their perspectives on cyber resilience in the context of digital growth. They addressed talent management challenges and the influence of artificial intelligence on cybersecurity. Finally, Peter Kits, Partner Cyber & Tech Law at KPMG Nederland, highlighted the necessity of "regtech" and emphasized the importance of preparing for future legislation. Following the keynotes new business models, the role of ecosystems in digital growth, and opportunities and threats of artificial intelligence were discussed with a panel. Aart Rupert, Bouke Hoving, and Floor van Eijk, CISO at NN Group shared their insights. In two rounds of discussions in break-out sessions, we explored three topics in parallel. Bouke Hoving and Reza D., Head of Data Science & Analytics at Wipro discussed new business models and target operating models. Floor van Eijk addressed the second topic, innovation. The discussions focused on artificial intelligence in conjunction with cyber resilience. The session was hosted by Marc van Ogtrop, industry director at Levi9 Technology Services, and Zahier M., Cyber Security Evangelist at Check Point Software. The third track was on cyber resilience. Esther Schagen-van Luit, Suzanne Rijnbergen, and Justin Broeders MA MBI hosted these breakout sessions. All in all, the Digital Growth Summit was an excellent warm-up for the upcoming #CIODAY2024 on November 19th – please register here: https://lnkd.in/dcJusSbq

📝 The article from McKinsey & Company emphasizes the critical need for financial institutions to proactively manage cyber risks associated with the adoption of emerging technologies. It highlights that as these technologies offer significant benefits, they also introduce new cyber risks. Some metrics from the article: ✅ Cloud and Edge Computing: 84% of financial services companies prioritize this, recognizing its applicability and value. ✅ Applied AI: 78% see this as relevant to their operations. ✅ Next-Gen Software Development and Digital Identity: Around 73% and 70% of respondents, respectively, find these technologies applicable. ✅ Underspending in Cybersecurity: A significant portion of respondents believe they are not investing enough in cybersecurity capabilities. ✅ Cybersecurity Spend Relative to IT Budget: On average, financial services companies allocate 13% of their IT budget to cybersecurity. ✅ Anticipated Increase in Cybersecurity Spending: Especially noted in Tier 2 banks, expected to see the largest growth in cybersecurity budget relative to their IT budget. ❗️Financial institutions should lay the foundation for action by asking themselves the following four questions about their pursuit of emerging technologies: ✅ Do we have the right technology priorities, and are they aligned with our security capabilities? Expansion into newer technologies, such as the cloud and applied AI, usually means greater reliance on third-party services. Companies should reflect on their capabilities and the maturity of their security before introducing any technology. The third-party risk management capability warrants special attention. ✅ Do we have the right metrics and reporting? Whether to satisfy regulators or to hold teams accountable, finserv companies need transparent, value-based metrics for managing cyber risks. They can aid in monitoring performance, informing decisions, and identifying emerging issues for quick action. These metrics should measure cyber risk from an emerging-technology perspective and be reported appropriately to the right stakeholders, including board members and executives, lines of defense, and the risk management team. ✅ Are we investing in the right things? Decisions on technology investments should take security capabilities, especially IAM capabilities, into account. The growing risk of security breaches and the looming need for regulatory compliance shine a spotlight on these capabilities. ✅ Do we have the right talent and technology to close capability gaps? Every organization needs to invest in talent, but hiring and retaining the right talent is a challenge and calls for exploring other ways to fill the talent gap, such as utilizing emerging technologies themselves, including AI. 👉 https://lnkd.in/dg7fkmv3 #riskmanagement #AI #technology #fintech #cybersecurity

📝 The article from McKinsey & Company emphasizes the critical need for financial institutions to proactively manage cyber risks associated with the adoption of emerging technologies. It highlights that as these technologies offer significant benefits, they also introduce new cyber risks. Some metrics from the article: ✅ Cloud and Edge Computing: 84% of financial services companies prioritize this, recognizing its applicability and value. ✅ Applied AI: 78% see this as relevant to their operations. ✅ Next-Gen Software Development and Digital Identity: Around 73% and 70% of respondents, respectively, find these technologies applicable. ✅ Underspending in Cybersecurity: A significant portion of respondents believe they are not investing enough in cybersecurity capabilities. ✅ Cybersecurity Spend Relative to IT Budget: On average, financial services companies allocate 13% of their IT budget to cybersecurity. ✅ Anticipated Increase in Cybersecurity Spending: Especially noted in Tier 2 banks, expected to see the largest growth in cybersecurity budget relative to their IT budget. ❗️Financial institutions should lay the foundation for action by asking themselves the following four questions about their pursuit of emerging technologies: ✅ Do we have the right technology priorities, and are they aligned with our security capabilities? Expansion into newer technologies, such as the cloud and applied AI, usually means greater reliance on third-party services. Companies should reflect on their capabilities and the maturity of their security before introducing any technology. The third-party risk management capability warrants special attention. ✅ Do we have the right metrics and reporting? Whether to satisfy regulators or to hold teams accountable, finserv companies need transparent, value-based metrics for managing cyber risks. They can aid in monitoring performance, informing decisions, and identifying emerging issues for quick action. These metrics should measure cyber risk from an emerging-technology perspective and be reported appropriately to the right stakeholders, including board members and executives, lines of defense, and the risk management team. ✅ Are we investing in the right things? Decisions on technology investments should take security capabilities, especially IAM capabilities, into account. The growing risk of security breaches and the looming need for regulatory compliance shine a spotlight on these capabilities. ✅ Do we have the right talent and technology to close capability gaps? Every organization needs to invest in talent, but hiring and retaining the right talent is a challenge and calls for exploring other ways to fill the talent gap, such as utilizing emerging technologies themselves, including AI. 👉 https://lnkd.in/dg7fkmv3 #riskmanagement #AI #technology #fintech #cybersecurity

Digital Growth Summit 2024 – Tuesday October 8th, the first Digital Growth Summit was held at the High Tech Campus in Eindhoven. Erik Beulen, who teaches Information Management at The University of Manchester, set the scene by explaining that digital growth starts with adopting new business models. Aart Rupert, Chief Digital Officer at Damen and the 2023 CIO of the Year, explained how he and his team are driving digital transformation in conjunction with business representatives. Furthermore, Bouke Hoving, Global CIO of Wholesale Banking at ING and the 2017 CIO of the Year, shared the implementation of the Target Operating Model powering the digital transformation at ING. These are great case studies – lots of learnings. Additionally, Esther Schagen-van Luit, Chief Security Advisor at Microsoft, and Suzanne R. MBA. (Rijnbergen), Managing Director of Cyber Resilience at Accenture, discussed their perspectives on cyber resilience in the context of digital growth. They addressed talent management challenges and the influence of artificial intelligence on cybersecurity. Finally, Peter Kits, Partner Cyber & Tech Law at KPMG Nederland, highlighted the necessity of "regtech" and emphasized the importance of preparing for future legislation. Following the keynotes new business models, the role of ecosystems in digital growth, and opportunities and threats of artificial intelligence were discussed with a panel. Aart Rupert, Bouke Hoving, and Floor van Eijk, CISO at NN Group shared their insights. In two rounds of discussions in break-out sessions, we explored three topics in parallel. Bouke Hoving and Reza D., Head of Data Science & Analytics at Wipro discussed new business models and target operating models. Floor van Eijk addressed the second topic, innovation. The discussions focused on artificial intelligence in conjunction with cyber resilience. The session was hosted by Marc van Ogtrop, industry director at Levi9 Technology Services, and Zahier M., Cyber Security Evangelist at Check Point Software. The third track was on cyber resilience. Esther Schagen-van Luit, Suzanne Rijnbergen, and Justin Broeders MA MBI hosted these breakout sessions. All in all, the Digital Growth Summit was an excellent warm-up for the upcoming #CIODAY2024 on November 19th – please register here: https://lnkd.in/dcJusSbq

The rise in the use of #AI + data-led-insights (a shift away from simple data harvesting), has meant more reliance on the use of cloud services and third party vendors.   This has placed a greater spotlight on #cyber compliance for #CRE companies - specifically SOC 2 and ISO27001- which very broadly (!) - assess the internal controls + security around a company's information + data / customer data.   With risk mitigation a core commitment to the "G" in ESG for many, we are seeing many #Proptechs begin to broaden their cyber capability (and accreditation of this). Indeed, many are making international controls compliance, a core part of product offerings or near-term, product roadmaps. It is a trend we expect to continue + this capability is a key consideration for both technology buyers, and emerging techs. Reach out to our team at The Proptech Connection today to find out how we can help you navigate the world of tech and real estate. We are an objective advisor to Real estate, emerging techs and the leading investors in market which gives us a unique view of market trends, we also represent a number of corporate VCs in market. As non-investors in Proptechs, our ability to offer independent assessments for our clients, makes us the trusted advisory firm in Proptech. DMs open.   #Strategy #Proptech By Stephen Macdonald CA + Stuart Daun, Ethan Ward