Global capital markets specialist Hatstand has announced the launch of its Cyber Security Risk Assessment Model, specifically designed to enable businesses to better understand the current state of their preparedness against the risk of cyber attack and identify any shortfalls within existing governance programmes.
In light of the increasing volume of cyber security threats and breaches, both the Security and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have made cyber security preparedness a top priority for their 2015 member company examinations.
This mandate is reinforced by recent research conducted at this year’s FICO Asia Pacific CRO Forum, which revealed that 64% of the region’s 34 senior bank executives claim that they feel unprepared for cyber attacks.
In response, Hatstand has designed its risk assessment model to help businesses take a proactive approach in addressing their cyber risk management to incorporate industry Best Practice. Through a process of interviews and self-assessments, Hatstand is able to create a comprehensive picture of both an organisation’s current and desired state of governance.
Lisa Toth, head of risk, compliance and regulation at Hatstand in the US, commented: “Cyber security really should be treated as an iterative and organic process. It must be acknowledged that every business, irrespective of its size, is susceptible to cyber attacks. There isn’t a ‘one size fits all’ solution to cyber security. A tailored approach will enable each company to fit the framework to both their risk appetite and budget on a strategic and tactical basis.”
Understanding of Best Practice techniques
Hatstand’s Cyber Security Risk Assessment Model will act as an extension to a business’ existing approach, with an understanding of Best Practices required to meet industry standards.
Importantly, Hatstand’s tools pull data from the National Institute of Standards and Technology Cyber Security Framework (NIST), the SEC/FINRA cyber security examination and the recently published Federal Financial Institutions Examination Council (FFEIC) Cyber Security Assessment Tool.
Following a self-assessment, Hatstand will provide a detailed report of its security findings, highlighting heat maps of key controls and gaps aligned with a business’ internal Key Performance Indicators. This, along with its detailed analysis and working papers, can then be used to assist communication with regulators and complement current cyber security planning processes.
Furthermore, Hatstand will provide the business with an understanding of what needs to be done in order to close the gaps, as well as introducing additional services to better manage governance strategies, programmes, business analysis and procedure/controls documentation.
Toth concluded: “With cyber security directly affecting clients’ data, networks, hardware, software and operations it’s absolutely crucial that organisations have sound governance practices in place in order to protect them from theft, business disruption and destruction. Cyber security is more than just an IT-related issue. It needs to be something that’s viewed as part of the overall enterprise risk management of the host company.”