Lenny Amah’s Post

The race to adopt emerging technologies has never been more intense. Tech is transforming so rapidly, and with it, the complexity of protecting it. How prepared are you to manage the growing cyber risks that come with it? It’s easy to get excited about AI, cloud computing, and digital identity frameworks with the speed and efficiency that they promise. But their risks, which, if not mitigated, could overshadow their benefits. As the recent McKinsey & Company report highlights (https://lnkd.in/dpGACTYF), it’s time for financial institutions to “future-proof” themselves by ensuring robust cybersecurity capabilities that evolve alongside their tech stacks. For startups in this space, the difference could be prioritizing cybersecurity early. Partnering with institutions that have mature cybersecurity infrastructures or building solutions that enhance cyber resilience can make your startup invaluable. After all, it’s about trust. Are you investing in cybersecurity? Let's discuss in the comments! #CyberSecurity #Fintech #Innovation #EmergingTech

"The Cyber Clock is Ticking: Derisking Emerging Technologies in Financial Services" thoroughly analyzes the interplay between rapid technological advancement and cybersecurity within the financial sector. This review posits that as financial institutions increasingly integrate emerging technologies, the imperative to bolster cybersecurity measures becomes paramount to safeguarding the industry's foundational integrity and ensuring sustainable growth. The analysis reveals a pressing dichotomy: while emerging technologies like cloud computing, applied AI, and next-generation software development offer unparalleled opportunities for efficiency, scalability, and innovation, they concurrently expose financial institutions to a multifaceted spectrum of cyber risks. These include, but are not limited to, data breaches, privacy infringements, and the exploitation of vulnerabilities by sophisticated cybercriminals. The document emphasizes that these risks threaten financial institutions' operational stability and pose significant challenges to maintaining customer trust and regulatory compliance. The synthesis underscores the need for a holistic cybersecurity strategy that transcends traditional risk management paradigms. This strategy should incorporate robust third-party management, privileged access management, and advanced metrics and reporting capabilities. Furthermore, it highlights the critical role of human capital in navigating the cyber risk landscape. The competency and readiness of cybersecurity personnel, underscored by continuous training and talent management, emerge as indispensable elements in the effective deployment and secure utilization of emerging technologies. Moreover, the analysis points to a fundamental requirement for a strategic alignment between technology adoption and cybersecurity investment. Financial institutions must anticipate the evolving nature of cyber threats and proactively integrate security considerations into the early stages of technological development and deployment. In conclusion, the document elucidates the imperative for financial institutions to adopt a forward-looking approach towards cybersecurity. This involves not merely reacting to emergent threats but embedding cybersecurity as a core technological innovation and strategic planning component. Questions 1) How can financial institutions cultivate a culture prioritizing cybersecurity as an integral part of technological innovation? 👀 2) What frameworks and standards can be established to ensure the seamless integration of cybersecurity measures into emerging technology deployments? 👀 3) How can collaboration between financial institutions, regulatory bodies, and technology providers enhance the financial services industry's collective cybersecurity posture? 👀 https://lnkd.in/dbU3nYYy

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

As the financial sector continues to evolve, leveraging technologies like applied AI, cloud computing, and digital identities, the complexity and sophistication of cyber threats also escalate. This calls for a strategic realignment of technology adoption and cybersecurity measures. Institutions must prioritize cybersecurity as a foundational technological investment. #iworkforComcast #Finance #ArtificialIntelligence #Cybersecurity https://lnkd.in/g8rQx9ZE

As the financial sector continues to evolve, leveraging technologies like applied AI, cloud computing, and digital identities, the complexity and sophistication of cyber threats also escalate. This calls for a strategic realignment of technology adoption and cybersecurity measures. Institutions must prioritize cybersecurity as a foundational technological investment. #iworkforComcast #Finance #ArtificialIntelligence #Cybersecurity https://lnkd.in/g7F6JsMw

As the financial sector continues to evolve, leveraging technologies like applied AI, cloud computing, and digital identities, the complexity and sophistication of cyber threats also escalate. This calls for a strategic realignment of technology adoption and cybersecurity measures. Institutions must prioritize cybersecurity as a foundational technological investment. #iworkforComcast #Finance #ArtificialIntelligence #Cybersecurity https://lnkd.in/gJbdsjQQ

As the financial sector continues to evolve, leveraging technologies like applied AI, cloud computing, and digital identities, the complexity and sophistication of cyber threats also escalate. This calls for a strategic realignment of technology adoption and cybersecurity measures. Institutions must prioritize cybersecurity as a foundational technological investment. #iworkforComcast #Finance #ArtificialIntelligence #Cybersecurity https://lnkd.in/eV5V33hH

As the financial sector continues to evolve, leveraging technologies like applied AI, cloud computing, and digital identities, the complexity and sophistication of cyber threats also escalate. This calls for a strategic realignment of technology adoption and cybersecurity measures. Institutions must prioritize cybersecurity as a foundational technological investment. #iworkforComcast #Finance #ArtificialIntelligence #Cybersecurity https://lnkd.in/gBiDcc4M