5 Emerging Risk Management and Security Trends in Banking
With the rise in cyberattacks at the forefront of the news on a near daily basis, it's becoming increasingly clear that the role of risk management and security must be elevated throughout the financial services and banking markets. Physical and IT security leaders are shifting toward a more proactive approach to security than in years' past to address and mitigate the latest emerging trends.
Cybersecurity or data breaches can cost organizations millions of dollars, not to mention the loss of trust in the brand by consumers looking to them to protect their critical information. This is especially true in the financial services realm. In 2017, a ring of hackers called the Carbanak gang was discovered by the Kaspersky Lab, where it was reported the ring had stolen more than $1 billion from financial institutions around the globe.
As a result, more and more financial institutions are focusing their efforts on both physical and cyber security. Gartner reports that worldwide information security spending will reach $93 billion this year, while Cybersecurity Ventures predicts global spending on cybersecurity products and services will exceed $1 trillion leading up to 2021 – and this is just the beginning. As hackers become more sophisticated, so too should the security measures in place to thwart attacks. This includes increased spending on products that engage in constant vulnerability testing, bringing all stakeholders to the table to collaborate on solutions, and introducing innovative technology that helps mitigate fraud.
Regulations have a significant impact on how businesses manage data and security – especially in the financial sector – and data can be both an asset and a potential liability. The GDPR, a European effort to regulate how entities that do business with people protect their private information, provides a new set of data privacy rules far more extensive than ever seen before. It’s a complicated implementation that security leaders must look at carefully to ensure business continuity and compliance.
Whether located in the European Union (EU) or simply processing the data of subjects residing in the EU, financial institutions find themselves at the center of this legislation. Banks must work diligently to comply with the GDPR to avoid penalties that can reach up to 4 percent of the company's entire global revenue. Additionally, users and installers must seek out vendors that understand the implications of the GDPR and its potential impact on security systems that store and access sensitive data.
Forward-thinking financial organizations are undergoing a seismic shift away from legacy systems toward new and emerging technologies, such as cloud-based solutions. Cisco predicts that by 2020, global cloud use will account for more than 92 percent of total data center traffic. This surge in adoption also represents a huge uptake in spending, which Gartner predicts will exceed $1 trillion in purchases dedicated to the cloud by 2020.
The cloud can deliver more agility and scalability for growing organizations, which can be ideal in the banking industry as satellite ATMs and new branches are added to a security plan. More and more businesses realize that leveraging the cloud is the most efficient way to solve emerging challenges. Today's cloud-based technology can empower financial organizations to take a more proactive approach to security management, allowing information gathered about people and vehicle movement, for example, to be readily available and actionable for security leaders. Cloud-based solutions can deliver a range of advantages including greater security, more resilience, ease of mobile user support, flexibility, reduced costs and a greater user experience.
Remote Monitoring Capabilities
Modern technology has resulted in a society that is always connected. For the security industry, this means it is now possible to remotely monitor many locations from hundreds of miles away. Cloud-based solutions provide a unique advantage for security directors to streamline security system management and maintenance from anywhere at any time, managing multiple locations seamlessly from a unified interface.
Remote monitoring is a backbone feature of many solutions on the market today, allowing unparalleled flexibility for security directors to act quickly and efficiently in the event of a breach or emergency. This ability allows for the elimination of once laborious tasks, such as reporting, that are now available through the quick click of a button on mobile or desktop devices. Essentially, remote monitoring provides ease of use and convenience, which can be critical for today's financial institutions and the security leaders that help protect them.
For a bank or credit union, the emergence of fraud and the amount of money lost to this threat is increasingly significant. As criminals become more sophisticated, financial institutions have to identify the best way to use time and money in an effort to mitigate the risk of fraudulent activity in their facilities.
The first step is bringing video surveillance and data management solutions together to integrate fully with access control and intrusion, creating a comprehensive approach to addressing emerging threats.
With so many challenges banking and financial institutions face, it’s critical to pay attention to the emerging trends that are guiding the safety and security of these businesses. Cloud-based solutions, remote monitoring and cybersecurity considerations are all gaining popularity in this vertical and it’s important to note that manufacturers and integrators must offer products and services that are in line with these needs.