current
Cyber Risk and Skills Shortage
The increasing reliance on third-party suppliers and a shortage of cybersecurity professionals exacerbate cyber risks for banks, particularly smaller institutions.
Timeframe
immediate
Categories
Impact areas
Detailed Analysis
The report emphasizes the growing cyber risks faced by banks, particularly due to their dependence on third-party suppliers and a shortage of skilled cybersecurity personnel. "With increased digitalization, the robustness of a bank’s cyber risk management is increasingly determined by the quality of its third-party relationships." This interconnectedness creates vulnerabilities within the supply chain. The skills shortage further compounds the issue, making it difficult for banks to effectively manage these evolving risks. "Smaller and less resourced organizations could be exposed to heightened cyber risks, in our view."
Context Signals
Increased reliance on third-party suppliers
Shortage of cybersecurity professionals
Evolving regulatory environment for supply chain oversight
Edge
Banks that prioritize cybersecurity investments and talent development will be better positioned to mitigate these risks.
Cybersecurity insurance and other risk transfer mechanisms could become increasingly important for managing cyber risk exposure.
