The Reserve Bank of New Zealand (RBNZ) is calling for resilience in the battle against cyber threats as they could cost the financial sector more than $100 million a year on average.
RBNZ’s latest report, which investigated the financial industry’s resilience to cyber threats, estimated that cyberattacks could cost the banking sector $104 million and the insurance sector $38 million on average annually. It also warned that there is a 5% chance that the costs could exceed $2.3 billion annually.
“While quantifying these costs is difficult, [our] findings indicate [that] the financial cost has the potential to be significant,” authors Aria Zhang, Rosie Collins, and Cavan O’Connor-Close said in the report. “The study did not capture any additional costs, such as the possible loss of confidence in the financial system.”
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With the rise of cyber threats not only in New Zealand but also in different parts of the world, RBNZ advised the financial sector to stay vigilant and focus on managing cyber risks effectively.
“[We are] strengthening [our] efforts to enhance the resilience of the financial system from cyber threats, including developing risk management guidance and promoting information-sharing in collaboration with industry and other public organisations,” RBNZ said.