Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Cyber Incident Cost Estimates And The Importance Of Building Resilience

Cyber-attacks could cost New Zealand’s financial sector more than $100 million a year on average according to a new Reserve Bank bulletin article, highlighting the need for industry resilience to counter these threats.

Part of an expanding programme of work on risks to the financial system, Cyber incident cost estimates and the importance of building resilience examines the financial sector’s resilience to cyber threats and estimates the potential costs to the country’s financial system, using two internationally recognised methods.

The authors Aria Zhang, Rosie Collins, and Cavan O'Connor-Close estimate an indicative average cost of cyber incidents of $104 million a year for the banking sector and $38 million annually for the insurance sector, or the equivalent of 2-3 percent of annual profits for the two industries.

The modelling also indicates that in any given year there is a 5 percent chance the costs could exceed $2.3 billion a year.

While quantifying these costs is difficult, the findings indicate the financial cost has the potential to be significant. The study did not capture any additional costs such as the possible loss of confidence in the financial system.

The country’s cyber-security agency CERT NZ found more than 60 percent of cyberattacks on New Zealand organisations in 2018 targeted firms in the financial and insurance services sector.

With the frequency and severity of cyber security incidents on the rise, the study highlights the importance of the financial sector remaining vigilant and managing cyber risks effectively.

The Reserve Bank is strengthening its efforts to enhance the resilience of the financial system from cyber threats, including developing risk management guidance and promoting information-sharing in collaboration with industry and other public organisations.


More information:

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds

The Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee ... More>>

ALSO:

Elevate NZ: Venture Fund To Lift Productivity

The Government’s new $300 million venture capital fund - announced in last year’s Budget – is now open for business as the Elevate NZ Venture Fund. Finance Minister Grant Robertson says lifting New Zealand's productivity requires well-functioning ... More>>

ALSO:


COVID-19: Case Confirmed In NZ – Expert Reaction

After spreading across the globe for months, the first case of COVID-19 has been reported in New Zealand. The Ministry of Health says the risk of a community outbreak is low, due to their preparedness and the high awareness of the disease. The Science ... More>>

ALSO:

Agriculture: New Legislation To Boost Organics

New organics legislation will boost consumer confidence and help grow an innovative sector, says Food Safety Minister Damien O’Connor. “The Organics Product Bill, introduced to Parliament this week, aims to increase consumer confidence when purchasing ... More>>

ALSO:

Biodiversity Policy: Misinformation Circulating

Forest & Bird is concerned at misinformation circulating regarding a policy statement aimed at protecting New Zealand’s unique biodiversity. The National Policy Statement for Indigenous Biodiversity is being consulted on by the ... More>>

ALSO: