Managing Risks in the Financial Sector

Financial institutions are responsible for the monetary security of individuals and companies across the nation. With threats of theft, fraud, cybercrime, and changing regulatory concerns, only the best practices in banking operations will help provide security for the funds and assets held under bank control. While the information published at FGIB can give you an idea of what those practices look like, you need to also be aware of the threats your financial institution faces.

Areas of Threat

One of the most significant areas of concern for the financial sectors is insider threats. This could be an unhealthy employee that decides to go rogue, or it could be a careless, untrained, or even exploited employee that creates havoc. Some of the risks that could be caused include:

  • Fraud
  • Disclosure of confidential or customer data
  • Disruption of infrastructure or security protocols
  • Monetary theft
  • Loss of intellectual property
  • Noncompliance with regulatory standards
  • Destruction, disruptions, or destabilizations of cyber assets
  • Public relations or embarrassment scenarios

For most banks, carrying an insurance policy that can help with the financial results of a claim or threat is a priority. However, taking this a step further includes risk management assessments and implementing a strategy to reduce the threats. Banks can secure their consumer’s trust and company longevity when there is a proactive risk management plan in place.

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