ISSA «Cyber Security Guidance Paper – Responding to a Cyber-Attack on a Securities Services Participant»

Cyber attacks continue to increase in frequency, sophistication and impact. These attacks have the potential to disrupt critical financial services and could undermine the security and confidence of the financial system. In the 2020 Allianz Risk Barometer the threat to businesses around the globe posed by cyber incidents moved to become the number one threat.

This document builds on two previous ISSA Risk Management publications, Inherent Risks in the Custody Chain (February 2017) and Cyber Risk Management in Securities Services (October 2018), and provides guidance for the incident management processes of Securities Services participants. The approach taken is to utilize the most impactful scenarios identified in the previous ISSA paper «Cyber Risk Management in Securities Services» to develop recommendations of areas that securities servicers should focus when developing playbooks used to recover from a material industry cyber event. More specifically, the scenarios selected were those of a CSD and large Custodian being impacted by a severe operational event. This paper proposes considerations for those involved in the Securities Servicing value chain in the event that another member of the financial services community’s defences is compromised. It covers both the compromised party and other Market Participants. The Working Group believes that these considerations are applicable to any disruption; irrespective of the cause of the service interruption. See the recommendations here.


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