Cyber Roundtable Whitepaper

ACSA urges superannuation, investment, and insurance sector leaders to fortify cybersecurity defences without delay

[5 DECEMBER 2023] A report released today by the Australian Custodial Services Industry Association (ACSA), the peak body for custodians and asset service providers in Australia, has reinforced the need for Superannuation and Investment companies to move quickly to address vulnerabilities in their cyber defences as the incidence and cost of cyber-attacks mount.

ACSA’s latest whitepaper, 'From vulnerability to resiliency: Insights on cyber, data, and information security in a time of uncertainty', analyses the escalating cybersecurity risks confronting the Superannuation and investment industries.

With ransomware events imposing an estimated annual cost of $2.59 billion on Australia's economy, the whitepaper urges the nation’s largest financial services providers to accelerate implementation of robust cybersecurity measures to protect core systems and data.

The report identifies critical risks based on recommendations from the ACSA's Cyber Roundtable and risk management and cybersecurity leaders from major Australian financial institutions and globally systemically important banks (G-SIBs). It establishes best practices for Superannuation and Investment companies, unveiling the strategies employed by resilient firms and featuring insights from industry leaders such as State Street, Citigroup, Clearstream, J.P. Morgan, Northern Trust, HSBC, and NAB Asset Servicing.

As AI rapidly reshapes the cyber landscape, offering improved threat detection while also empowering cyber criminals with more sophisticated breach tools, the report argues leaders should adopt a multifaceted approach to combat cyber threats.

ACSA Chief Executive Officer David Travers said, "Cybersecurity is a frontline defence for our industry. With cyber threats continuing to surge, we can't afford complacency. The financial sector is at a critical juncture, particularly amid the AI revolution, and this whitepaper should serve as a resounding call to embrace best practice global insights to help navigate the headwinds to come.

"Cybersecurity is no longer optional but necessary for industry resilience and integrity. As we have seen this year with the highly publicised cyber breaches among Australian corporations, financial fallout is just the tip of the iceberg. Escalating debt and insurance costs, fractured customer relationships, operational turmoil, and the haemorrhaging of intellectual property are also repercussions of a cyber-attack or breach.

"In an increasingly threatened cyber environment, our research should be a rallying cry for sector leaders to fortify the resilience of our financial ecosystem. Boards and executives must champion a culture of cyber vigilance that permeates every layer. This goes beyond safeguarding balance sheets; it's about shoring up the bedrock of global financial markets."

The ACSA's report offers several recommendations to help business leaders enhance their cyber security and data privacy, including:

• accountability for boards and the c-suite in managing cyber risks
  
• ongoing education and training to foster vigilance and stay ahead of emerging threats and vulnerabilities
  
• implementing strong cyber hygiene
  
• greater use of AI-powered security tools coupled with promotion of ethical AI frameworks
  
• adapting security measures as the landscape continues to evolve.

To learn more about ACSA's whitepaper, please visit the website here.

Read the media release in full here.

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ABOUT ACSA
The Australian Custodial Services Association (ACSA) is the peak industry association for custodial and investment administration services in Australia. ACSA promotes excellence, collaboration, and innovation within the industry, playing a crucial role in ensuring the integrity and security of financial markets.

For more information about the whitepaper and ACSA's initiatives, visit https://acsa.com.au/