Over 100 European banks can be examined on their cyber-attack response and restoration capabilities this 12 months, the European Central Financial institution (ECB) has introduced.
The EU’s central financial institution will conduct its first ever cyber resilience stress take a look at on 109 immediately supervised banks in 2024. This take a look at will deal with the banks’ means to answer a profitable cyber-attack, quite than their means to forestall it.
The announcement follows an ECB analysis of banks’ administration of IT danger revealed in November 2023, which discovered there was little progress in IT danger administration within the sector.
It discovered “critical supervisory issues that affirm the necessity to proceed on-site inspections along side tailor-made discussions between banks and supervisors.”
How Will the Cyber Resilience Stress Check Work?
Within the stress take a look at state of affairs, a cyber-attack can have efficiently disrupted the financial institution’s each day enterprise operations.
Supervisors will then observe the financial institution’s response and restoration measures, together with their means to activate emergency procedures and restore regular operations.
As well as, 28 banks will bear an enhanced evaluation by which they are going to be required to submit additional particulars on how they coped with the cyber-attack.
This can even consider whether or not there may be ample coordination with different supervisory actions. These 28 banks will symbolize totally different enterprise fashions and geographies to supply a “significant reflection” of the euro banking system.
Following the stress checks, supervisors will talk about the findings and classes discovered with every financial institution as a part of the broader 2024 Supervisory Overview and Analysis Course of, which assesses a financial institution’s particular person danger profile. The train’s most important findings will then be revealed in the summertime of 2024.
In October 2023, Lloyd’s of London revealed a systemic danger state of affairs, which predicted {that a} cyber-attack on a significant monetary providers fee system may end in international financial losses of $3.5trn.
