Cybersecurity Risks and Its Regulations. The Philosophy of Cybersecurity Audit

Abstract

Since financial institutions are leading targets of cyber attacks, the article’s main goal is to show that without dedicated action, the global financial system will only become more vulnerable as innovation, competition, and the pandemic further fuel the digital revolution. Also, the cost of cybercrime at financial institutions outpaces the cost of cybercrime in other industries. For example, according to a 2019 private study, the per-company cost of cybercrime is over $18 million for financial services companies, around 40% higher than the average cost for other sectors. If the entire system fails to address cybersecurity concerns adequately, this could lead to systemic risk – the risk that a cybersecurity incident would destabilize the financial system. The article considers the level of protection of confidential information in financial enterprises and the means of combating data leaks. In addition, the question of the need for an information technology audit, especially a cybersecurity audit, is raised.