Data compromise in financial services - are you missing the point?

It’s a financial crime issue

April 2008

This month the FSA published the findings of their thematic review of the data security challenges faced by regulated firms.

Key findings included:

1. Lack of appreciation of the gravity of the risk (especially around financial crime)
2. Failure to devote or coordinate adequate resource to the risk
3. Lack of expertise to make a reasonable risk assessment or devise mitigating controls

In this short video, Andrew Clark, PwC lead partner for financial crime discusses the value of conducting a targeted exposure assessment. Video length - 03:05 mins

The FSA is treating data compromise as a financial crime issue - are you in line with them?

Treating the problem as a financial crime issue forces you to look beyond matters relating just to technology.  This is important because there are a range of major data compromise threats which do not fall into the technology space.  For example:

• malicious insider activity
• weak security practices by third parties

Yet despite the growing number of incidents, many firms  are missing the point and continue to view the threat primarily as an IT issue.

PwC exposure assessment

PwC’s specialist financial crime data compromise team can help assess your exposure to this increasingly common risk in line with the requirements set out by the regulator.

We go beyond the principles that can be found in global standards, best practice and typical audit plans and incorporate a detailed understanding of criminal activity and techniques together with our experience of financial crime matters right across the breadth of the industry.

“If firms consider that their in-house resources or expertise are inadequate to perform a coherent risk assessment, they should consider seeking external guidance”

FSA – April 2008

Get the point! 

Top 5 benefits of a Data Compromise Exposure Assessment:

1. Treats the threat as a financial crime issue – in line with the Regulator
2. Considers the problem from both the criminals’ perspective and the Regulator
3. Can help demonstrate real commitment in response to the FSA’s concerns
4. Helps identify potential “avoidable” losses to protect reputation
5. Focus on pragmatic and realistic recommendations