Fintech, cyber risk & solutions

Varied approach

Although cyber threats cut across borders, regulatory approaches to cyber risk in Asia Pacific are varied and localised, with no significant steps yet taken towards harmonised standards across the region.

Many financial institutions struggle to understand the regulatory differences at a country level or are aware of emerging threats so as to design coherent and robust cyber risk programs across jurisdictions.

Another challenge for firms is the shortage of IT security specialists and cyber professionals, making it difficult to stay up to date with the pace of change in the cyber landscape.

There can also be a lack of management recognition or understanding of the importance of cyber security, which may mean a failure to adopt a coordinated approach across functions.

While different countries face different challenges, there are broad regulatory themes and approached common across the region underlying the clutter of difference laws, rules and standards.

Framework

Cyber-attacks are inevitable. Regulators and organisations must accept this and turn their attention to building enterprise-wide programs to ensure they can adapt quickly and effectively to the constantly changing landscape. The ability to recover fast is critical.

Beyond individual action, it is important for industry, regulators and governments to work together to further enhance cyber skills and expertise, to develop common standards and approaches, and to support information sharing.

Coordinated responses to incidents and attacks, drawing on group knowledge and experience, is a key element to maintaining cyber resilience within the system as a whole and among its many participants.

Kevin Nixon & James Nunn-Price are partners, risk advisory at Deloitte