This is why organisations should be concerned about cybersecurity.

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This is why organisations should be concerned about cybersecurity. Global regulators are focusing in on cybersecurity risk management across market sectors, including financial services. Along with credit rating agencies, agencies that play a primary role in deciding the credit ratings of banks.

We reported recently on the work of credit rating agencies on the impact of cybersecurity on sovereign dept, and U.S local, state and government. As rating agencies see the increased risks of cyber attack and the negative impact on capital.

Fitch Rating’s Tamma Febrian ‘That while there are no specific weight assigned, the credit company consider the cyber risk factor as a part of a bank’s broader risk control and risk profile which translates to 10% of the total weight on the Viability Rating or standalone credit profile of a bank.’

“Should we see material weakness in its cyber risk controls or evidence of repeat cyber risk attacks that would undermine the bank’s franchise and business performance, the bank’s risk profile could, however, carry a greater weighting or become a more constraining factor on the bank’s final viability rating,” Mr. Febrian added.

The SEC cyber proposal will increase the oversight of cybersecurity risk management by rating agencies. As they access more information on the cybersecurity maturity of pubic firms.

Ted Dziekanowski

#cybersecurity #cyberriskmanagement #creditratings #fitchratings #theaugustagroup

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