Learning Objectives:

  • Identify emerging cyber risks in digital banking.

  • Understand AI and cybersecurity.

  • Describe future trends in cyber risk management.

8.1 AI and Cybersecurity

AI is both a tool for cybersecurity and a source of new risks . Emerging risks include:

  • Adversarial AI: Attacks that manipulate AI systems.

  • Deepfake Fraud: Using AI-generated content to impersonate individuals.

  • AI-Powered Phishing: More sophisticated and personalised phishing attacks.

  • AI Model Vulnerabilities: Risks from vulnerabilities in AI models used for security.

8.2 Cloud Security and API Protection

As banks adopt cloud-first and mobile-first strategies, securing API ecosystems becomes critical . Key considerations include:

  • API Security: Protecting APIs that connect banking systems to third-party services.

  • Multi-Cloud Security: Managing security across multiple cloud providers.

  • Container Security: Securing containerised applications.

  • Secure Development: Integrating security into the software development lifecycle.

8.3 Cyber Insurance and Risk Transfer

Cyber insurance is an emerging tool for transferring cyber risk . Key considerations include:

  • Evaluating cyber insurance coverage options.

  • Understanding policy terms and exclusions.

  • Using cyber insurance as part of a broader risk management strategy.

  • Recognising that insurance does not replace robust security controls.

8.4 Integrating Cybersecurity into Enterprise Risk Management (ERM)

Examiners expect cybersecurity to be integrated into enterprise risk management . Demonstrating these connections shows regulators that cybersecurity isn’t siloed but embedded in the institution’s broader governance and strategic planning . Management can use assessment results to inform strategic planning, budgeting, and staffing plans. As implementation progresses, framework prioritisation efforts can also evolve, moving from foundational practices to more advanced and comprehensive controls

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