The City Can Avoid Hack Attacks Without Costing Millions
12 May 2004
Compliance to the new international banking laws relating to security risks should not cost the banking industry millions of pounds as some have claimed says BSI. Compliance to this regulation will, in fact, be considerably easier and more cost effective if banks implement the appropriate management systems.
Recent media reports have stated that regulation compliance will cost the average sized bank £200 million. However, these penalties will only be levied if banks do not comply with Basel II. The cost of not taking measures to protect company systems against cyber-criminals could be considerably more expensive by reducing profits and damaging reputation.
The 2006 deadline for Basel II compliance is fast approaching and the sector faces one of its biggest challenges since the 'Big Bang' in 1986. BSI is working with partners and financial institutions to understand the key issues with Basel II so that it can clarify the real impact on the industry and the role that effective risk management plays in compliance.
Capital Planning is directly linked to risk and an appropriate risk management framework helps to achieve compliance and reduces the level of capital reserves required to support an organisation's operations.
Chris Ferrant, for BSI says: "At the heart of Basel II compliance lies a four letter word – ‘risk’, an area which has massive significance for companies seeking to achieve compliance. This is not just about IT-related risk, as criminals can tap into sensitive and valuable information via other methods than hacking. Management Systems are not only effective methods of managing risk but with implementation of the globally recognised standard in information security, ISO 17799, they can also greatly assist an organisation’s readiness for compliance."
ISO 17799 offers organisations a framework that is recognised by industry regulators to be an effective solution for managing all risk and security aspects of Basel II compliance.
For further information contact Timothy Bush at BSI Group on tel 020 8996 7838 or email: email@example.com
For more information please contact:
Wilma Tulloch on +44 (0)20 8996 6330 OR
Marc Edney on +44 (0)20 8996 6330