Financial Services
“Ostrich's Cyber Risk Birdseye product have brought value in understanding the current risk landscape through understanding the current control environment and quantifying risk exposure for risk reward decision making."
—Cybersecurity Director of a Global Financial Services company
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The Necessity of Cyber Risk Management for Financial Services
Cyber risk in the Financial Services industry results from a variety of targeted cyber-attacks by motivated threat actors and nation states. Cyber Risk Quantification (CRQ) measures the financial impact of cyber-attacks resulting in losses of various kinds, like operations disruption, data compromise, reputation damage and more.
CRQ scenario simulations enable prioritization of mitigating cyber security measures with the highest ROI that satisfy risk appetite, and help define governance when acceptable risk thresholds are exceeded.
Common Concerns You Face
Lack of Tangible Metrics for Decision-Making
Financial institutions often struggle to translate technical cybersecurity metrics into meaningful financial terms, hampering investment prioritization and stakeholder communication. CRQ provides a standardized framework that quantifies the financial impacts of cyber incidents.
Difficulty in Prioritizing Cybersecurity Investments
Financial institutions frequently struggle with budget limitations that necessitate prioritizing cybersecurity investments. CRQ offers a remedy by facilitating cost-benefit analyses of cybersecurity strategies, estimating risk reduction and financial gains, enabling firms to allocate resources efficiently and align investments with their risk tolerance.
Complexity of Assessing Third-Party Cyber Risk
Finance institutions often deal with complex assessments of cyber risk from numerous third-party vendors. CRQ simplifies this by standardizing the evaluation of potential financial impact due to vendor cybersecurity vulnerabilities. By quantifying the aftermath of third-party breaches, CRQ empowers informed vendor choices and management.
Top 5 Threats In Financial Services
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Financial institutions are prime targets for advanced cyberattacks, including ransomware, APTs, and insider threats, which can lead to significant financial losses and reputational damage.
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The financial industry faces complex and evolving cybersecurity regulations that must be consistently met to avoid penalties and maintain customer trust.
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Dependence on third-party vendors for services introduces cybersecurity risks, requiring careful assessment and monitoring of these partners to ensure they adhere to security standards.
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Protecting sensitive customer data is paramount in financial services, requiring robust measures to prevent breaches and unauthorized access.
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Many financial institutions continue to use outdated systems, which can be vulnerable to attacks and challenging to secure, necessitating modernization efforts.
How efficient is your firm at assessing top risks, prioritizing and justifying budgets to the board?
Organizations take an average of 277 days to detect and contain a data breach, meaning that the industry average resolution time is nine months — enough time to severely damage reputation, revenue, and customer faith.
-IBM, 2023
Assess risk over time
Assessing cyber risk over time benefits financial services by continuous monitoring of evolving risks, early detection of risks, data-driven decision making, and improved cybersecurity strategies for safeguarding investments and enhancing reputation among stakeholders.
Proactive risk management
Cyber risk quantification facilitates a proactive approach to cybersecurity. It allows organizations to identify potential weaknesses and take preventive measures to reduce the likelihood of a cyber incident, rather than merely reacting after a breach has occurred.
Business continuity
Assessing and quantifying cyber risk benefits financial services by providing a comprehensive understanding of vulnerabilities, enabling proactive risk management, efficient resource allocation, and safeguarding investments from financial and reputational damages.