What is Cybersecurity?

In the digital age, cybersecurity has become a cornerstone for businesses aiming to protect their data and maintain trust with stakeholders. Having robust cybersecurity measures in place is fundamental to a firm’s operational resilience, enabling it to effectively manage disruptions from cyber-attacks that may impact financial stability, harm consumers, or disrupt market confidence.

At its core, cybersecurity is how individuals and organisations reduce the risk of cyber-attacks and protect against the unauthorised exploitation of systems, networks, and technologies. It includes the application of technologies, processes, and controls to protect systems, networks, programs, devices and data from cyber-attacks. Being cybersecurity compliant has to do with adhering to a set of rules and standards established by various authorities to safeguard sensitive information.

These rules may stem from laws, regulatory bodies, or industry groups, and they vary across sectors and regions. To name a few, the UK GDPR sets rigid requirements for data protection within the UK, while ISO 27001 offers a voluntary framework of best practices for information security management.

Main types of cybersecurity

Cybersecurity can be categorised into the following distinct types:

  • Critical infrastructure security
  • Application security
  • Network security
  • Cloud security
  • Data security
  • Internet of Things (IoT) security

To cover all its bases, an organisation should develop a comprehensive plan that is resilient, efficiently prevents attacks and protects its sensitive information via a multi-layered approach, integrating the three components that play active roles in its cybersecurity posture: people, processes and technology.

Cybersecurity regulation and reporting

In the UK, cybersecurity rules adopt a comprehensive approach, making it challenging to fully grasp the regulations. They are often intertwined with a broader set of rules. Firms are expected to align with the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) rulebooks. Moreover, firms should also take responsibility for cybersecurity under the Senior Managers and Certification Regime (SMCR) and adhere to the Bank of England’s CBEST and CQUEST frameworks, as well as fulfil breach reporting obligations.

To remain compliant, firms must proactively map out their cybersecurity strategies, ensuring they invest adequately in strengthening their internal systems. Non-compliance can result in severe penalties, including the loss of contracts, financial fines, and reputational damage.

Developing a positive cybersecurity culture

Building a cyber risk culture through effective training and establishing credible incident response plans is essential. It is important for firms to maintain a proactive stance in building a strong foundation of cybersecurity and testing controls within networks to safeguard against cyber attackers, such as malicious insiders or supply chain attacks.

Looking to the future

Cybersecurity compliance will likely become an integral part of financial reporting. As such, businesses are encouraged to develop robust cyber risk reporting processes to inform senior management and stakeholders about the risks and measures taken to mitigate them.

The key takeaway for firms in the financial services sector is the imperative to stay ahead of regulatory expectations, invest in strengthening internal frameworks, and foster a culture that prioritises cybersecurity. With the threat landscape evolving, firms must remain vigilant and responsive, ensuring they are equipped with the necessary tools and strategies to assess and bolster their cyber resilience.

How Complyport can help

Complyport is a market-leading consulting firm supporting the UK financial services industry for over 22 years. We specialise in providing Governance, Risk and Compliance services to support the regulated financial services industry to raise standards and thrive.

Our Operational Resilience and Cybersecurity team specialises in building robust and digitally enabled solutions to strengthen your Operational Resilience and Cybersecurity capabilities. Our comprehensive range of services is designed to support your journey towards Operational Resilience and Cybersecurity regulatory compliance.

Here is how we can assist you:

  • Operational Resilience Programme Support
  • Ongoing Operational Resilience Support
  • Comprehensive IT Audit, IT Audit Report, and Annual IT Audit Plan
  • Cyber Risk Management Support
  • Third Party Risk Management Services
  • Efficient Day-to-day Operational Processes
  • Operational Resilience Assurance
  • REP018 Report

Complete the form below to schedule a free consultation.

About Complyport

Complyport is a market-leading consulting firm supporting the UK financial services industry for over 22 years. We specialise in providing Governance, Risk and Compliance services to support the regulated financial services industry to raise standards and thrive.

Complyport can assist with the preparation of a GAP analysis and impact assessment on the investment firm’s capital adequacy and risk management framework of the Company under the regulatory framework.

We specialise in supporting the UK financial services industry with compliance guidance, advice and best practice.

  • Operational resilience & Cybersecurity advice
  • Financial Crime Risk and Compliance support
  • Compliance managed services and resourcing compliance personnel
  • Skilled Person Reviews and Regulatory Investigation
  • Prudential support, IFPR, ICARA and financial resilience advice
  • Consumer Duty implementation advice
  • Financial Promotions guidance, support, and management software solutions
  • CASS advice and protections of client assets
  • Comprehensive compliance work-flow management software

Complete the form below to schedule a free consultation.

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