On Thursday 12 April, the joint committee of the three European Supervisory Authorities (ESMA, EBA and EIOPA) warned against the cyber-risks to the financial markets and the banking and insurance sectors, in its report on risks and vulnerabilities for the second half of 2017.
“Insufficient protection against cyber incidents and disruption in the availability of critical IT infrastructures could lead to major damages for financial institutions concerned, and potentially to the wider financial system”, they warn in a joint press release.
In the banking sector, 42% of the respondents to a risk survey conducted by the EBA in December 2017 identified cyber-risks and data security as the main drivers behind increasing operational risks. With demand for electronic products constantly on the increase, insurance companies are particularly under threat from cyber-attacks.
Cyber-risks are particularly significant due to the multiplying effects they may have, bringing about other commercial risks, and due to the high costs in the event of data breaches or fraud, the report explains.
New challenges are also lining up, with the increased externalisation of IT services to the 'cloud', posing risks that are very different from those brought about by traditional IT externalisation. In 2018, the European Securities and Markets Authority (ESMA) plans to launch a supervisory project on 'cloud computing' – a model allowing access to a shared network and a set of configurable IT resources.
It is worth noting that the European supervisory authorities repeat their warnings concerning virtual currencies in their report. More generally, they consider that in light of the current risks and uncertainty surrounding Brexit, vigilance and cooperation in supervisory matters in all sectors will be vital. (Original version in French by Marion Fontana)