Calibrating risk with cost when funds are tight

By Kim Hong-keun

With each advance in technology that enhances connectivity and communication, the traditional corporate perimeter, with clearly identifiable boundaries, diminishes. In its place, a network with limitless potential is rising ― one where financial institutions, their customers, and their partners demand access to information whenever and wherever they need it. Customers and partners will increasingly consider how the custodian of their data is going to protect sensitive information before embarking on a long-term relationship.

As a result, high-performing financial services players will take a more proactive and holistic approach to cyber security. Since attacks can be multipronged ― via email, the Web, and the network ― the ability to view traffic across protocols and networks can improve an organization’s ability to detect and block these attacks.

Cost and risk are the trade-offs in any security agenda. Some elements of a cyber security solution can be expensive, with the return on investment (ROI) difficult to quantify. It’s not fun and it rarely adds to the bottom line ― but the risk of a serious, highly publicized breach is equally hard to quantify and potentially catastrophic. As the pace of technology accelerates, an enterprise will have to calibrate its tolerance for risk in accordance with business requirements.

We also urge more pan-industry collaboration on cyber security issues, through groups such as the Financial Services Roundtable. An attack on one institution should be quickly communicated to others, so that they can better prepare. Even direct competitors can benefit from building a security community, without revealing their secrets.

Financial services leaders must take bold steps to ensure that security approaches and solutions are agile enough to adapt to rapid technological change today, while forging the right risk management program to support business growth and high performance.

Kim Hong-keun is a partner in the area of Technology Growth Platform at Accenture Korea.