In light of the rapidly evolving risks posed by cyber security and financial technology, a majority of central banks worldwide seem to be moving slowly, according to the latest Risk Management Benchmarks 2024. The report reveals that out of the 31 central banks that were surveyed, only a quarter (25.8%) have updated their policies regarding cyber security and fintech risks in the past year.
Slow Policy Updates in the Face of Growing Threats
On the other hand, 23 central banks, representing 74.2% of the total, have not made any adjustments to their policies, indicating a widespread reluctance or inability to respond quickly to the ever-changing threat landscape. However, it is worth mentioning that among the banks that have maintained their current policies, three of them have disclosed plans to implement changes in the near future.
The Rise of Joint Risk Units
The Risk Management Benchmarks 2024 also examined the prevalence of joint cyber security and fintech risk units. A total of 33 banks responded to this inquiry, with 21 of them (63.6%) confirming the existence of such units. This underscores the growing recognition of the interconnected nature of cyber security and fintech risks, and the need for integrated management approaches.
Factors Driving Policy Revisions
Although the pace of policy revision may be relatively slow, it is evident that central banks are not completely unaware of the increasing threats. Factors like technological advancements and climate change are compelling some banks to reevaluate their risk strategies and make necessary amendments. However, the question remains whether these changes will happen quickly enough to mitigate the imminent cyber security and fintech risks faced by central banks and the global financial system as a whole.
