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How are Technological Innovations Driving the Enhancement of Financial Security?

CFO Tech Outlook | Friday, September 11, 2020

With the world entering a new decade, it stands reminded that technological innovation and cybersecurity threats persist in developing and evolving at an incredible pace. 

Fremont, CA: Firms should continue to build proper defenses to protect confidential consumer data and financial market integrity. Cyber threats have risen to become one of the top threats to the financial services sector, and the ability of the firms to be resilient in the face of these threats is paramount. But the most vital question is, where exactly does the industry currently stand concerning the resources devoted to cybersecurity safeguards and resilience activities? Top 10 Auto Finance Solution Companies - 2020

Meanwhile, new technology solutions like cloud computing, distributed ledger technology (DLT), and artificial intelligence (AI), sustains to transform the way the financial services sector operates. It is essential to understand various risks that new technologies can introduce and how the assessments of these risks need a keen understanding of the technology and the risks inherent with how the technology is implemented. As firms are innovating with every passing day, they also have to consider and address the risks that come with technology use.

The Impacts of the Changing Threat Landscape

The financial firms are not alone in understanding the cybersecurity threats; global policymakers have also taken note. The Financial Stability Board, an international standard-setting body that makes recommendations on the global financial system, issued a report in 2017 that found that 72 percent of its jurisdictions were planning to give additional cybersecurity guidance within the year. It is transparent that an attack on one or more institutions can have a domino effect throughout the financial sector; therefore, policymakers and regulators strive hard to provide principles and guidance to promote the best practices to manage these risks. However, protecting institutions does not suffice. As firms build resilience into their operations, cyber threat actors transit and focus their efforts on the third- and fourth-party vendors to get access to financial data. As a result, the financial services sector, the supervisors, and standards-setting bodies should continue to be vigilant in tending to these risks and promoting third-party resilience.

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