While cybercriminals are always on the lookout for loopholes to exploit various companies, the banking sector happens to be their prime target. Their reason is quite apparent – money. They seek to lay their hands on financial and personal customer data using which they extort money. Considering the rise in cybercrimes, it is significant that banks prioritize cyber security to evade not just financial loss but also damage to the company reputation.
Understanding Cyber security Importance of Risk Mitigation in Banking Industry
Identifying risks with the help of risk assessment is referred to as risk mitigation. Once the risks are identified, they need to be placed in a priority list according to the needs of the business. Once this list is created, the types of approaches that need to be taken to eradicate or minimize the risks need to be identified. In short, it is basically identifying potential dangers and then taking preventive measures to avoid or minimize them.
Banks should meticulously monitor all their transactions in order to locate any suspicious activities. They should ensure that all their systems and processes are secured with processes that can evade malicious online activities and cyber-attacks.
Here are some risk mitigation steps for banks and other financial institutions that can help them safeguard theirdata and sensitive customer information:
Sturdy Risk Mitigation Strategy
In order to have a good risk mitigation in process, financial institutions can follow the below best practices:
- Establish a clear and practical management framework that easily allows them to identify, assess and control potential risks.
- Implement a risk-based capital adequacy framework so the financial institution 9is covers potential risks. The framework should define the risk categories, determine capital needs and mention capital adequacy.
- Implement a comprehensive policy of risk management that outlines in detail the roles and responsibilities of people overseeing the risk management along with the approach to risk management. Details for risk monitoring, identification, and how to control them should also be entailed in the policy.
- Operational risk management should be strengthened.
- Thorough audits should be performed regularly.
All important transactions and information should be performed using encryption as it converts plain text to coded text and allows only the user with a specific key to be able to unlock the actual text.
Firewalls and Intrusion Detection Systems
A firewall is a barrier between the internal network of the financial institution and the internet. It helps in filtering suspicious and unwanted traffic and offers safety.
Intrusion Detection Systems, or IDS, are an added layer of protection that allows financial institutions to keep an eye on their networks for all suspicious activities. It can also detect patterns of activity that may indicate a cyber-attack, such as an unexpected amount of data transfer in a very short period or multiple login attempts from various locations.
Cyber-Security Training for Employees
All employees working in the financial institution must undergo cyber-security training as most cyber-attacks tend to exploit human vulnerabilities where the messages or emails require clicking on malicious links or having weak passwords.
Cyber Incident Response Tactics
This is basically a checklist that comprises instructions for the management and the IT team on what they need to do post a cybersecurity attack. It helps in minimizing the impact and allows immediate recovery.
Cyber security is crucial for all banks and financial institutions. Their reputation depends on how much their customers trust them, and for this, they must assure the customers that their information and money are safe with them. The banks should have comprehensive cyber security procedures and policies to evade cyber-attacks.
Know the admission criteria of cyber security courses in Kolkata.