This Report by the National Cyber Security Centre highlights the importance of cyber security to firms in the FS sector but also ensuring that you have robust processes in place to manage any risks arising from outsourcing the provision of technology.
The FCA are increasingly focusing on firms' approach to outsourcing and the risks that this can pose - in the event of a cyber incident involving an outsourced provider, those arrangements are likely to come under serious scrutiny by the FCA.
financial services firms reported 819 cyber incidents to the Financial Conduct Authority (FCA) in 2018, a significant increase on the 69 incidents reported in 2017. Retail banks accounted for almost 60% of the total number of reports, followed by wholesale financial markets (14%). The increase in reports may also be a sign of GDPR having a positive impact on organisations reporting incidents and not necessarily just an increase in the number of actual attacks. Incidents were attributed mainly to third party failure (21%) with cyber attacks cited in only 11% of cases (93 instances).