Posts this month
A blog on financial markets and their regulation
Very simple. Describe them as your greatest resource!
In my last blog post, I pointed out that the Carbanak/Anunak hack was mainly due to the recklessness of the banks’ own employees and system administrators. Now that they are aware of this, banks have to disclose this as another risk factor in their regulatory filings. Here is how one well known US bank made this disclosure in their Form 10K (page 39) last week (h/t the ever diligent Footnoted.com):
We are regularly the target of attempted cyber attacks, including denial-of-service attacks, and must continuously monitor and develop our systems to protect our technology infrastructure and data from misappropriation or corruption.
Notwithstanding the proliferation of technology and technology-based risk and control systems, our businesses ultimately rely on human beings as our greatest resource, and from time-to-time, they make mistakes that are not always caught immediately by our technological processes or by our other procedures which are intended to prevent and detect such errors. These can include calculation errors, mistakes in addressing emails, errors in software development or implementation, or simple errors in judgment. We strive to eliminate such human errors through training, supervision, technology and by redundant processes and controls. Human errors, even if promptly discovered and remediated, can result in material losses and liabilities for the firm.