With technology delving deeper into the daily lives of a common man it is not only offering certain merits by making our lives easier but it poses certain threats. This issue is multi pronged on an organizational level as most of the institutions have started offering convenient online solutions to their customers in order to stay ahead of the growing competition in the market.
With many unpleasant cyber crimes happening in the recent past specially in the financial industry, State bank of Pakistan has taken notice by issuing guidelines on prevention against cyber crimes. These guidelines are primarily issued for banks, MFBs, DFIs to enhance their security measures to not only predict, withstand, detect, but also respond promptly to such cyber crimes haunting their systems.
These instructions are primarily dealing with taking ownership of one’s risk, responsibility and accountability by the management, regular evaluation and monitoring of cyber security measures, rational appraisals and tests, collaboration by industry players and lastly contingency planning.
SBP has categorically given clear instructions to the Board of Directors (BoD) of various institutions to guarantee that cyber security systems are in place in their organizations with respect with soaring cyber crimes in the industry. The Senior management is also required to develop an effective and fool proof organizational plan for cyber security management. This plan should not only be implemented but also regularly monitored and reviewed.
With monumental advancement in technology and latest innovations cyber crimes have become highly sophisticated and their impact of financial transactions is colossal. Although security systems have also become efficient but there is still a wide gap in adequate implementation of these systems.
Although banking industry has faced a paradigm shift in the last decade in terms of provision of highly customized services and competitive pricing strategies yet many organizations are reluctant to invest heavily in these counter systems to curb these attacks. Thus, exposing themselves to these risks. SBP, being the central body, has taken a proactive step where all banks, DFIs, MFBs are required to adhere to these guidelines by 31st December 2016.
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