Efficient cybersecurity tactics are needed now more than ever to counter the invasive-nature of these attacks. One way to defend against cyber threats includes collaboration among central banks, commercial banks, and government authorities (Franklin 2). In this way, it can be seen that cyberattacks against banks affect more than just financial institutions themselves. “Cooperation is essential to strengthening resilience toward cyberattacks, especially since cyber-threats are global”, said a member of Sweden’s Riksbank (3). According to the same source, Riksbank is part of the European System of Central Banks, a collaborative organization intended for European banking. National institutions have also been created to encourage collaboration. Hans Van Loon of the Dutch Banking Association states, “In the Netherlands, we have the TNO (National Research Institute) that investigates the next generation of solutions to this issue, and ensures that we have the appropriate cybersecurity technology available. It has also pushed for innovation to be available to the market earlier on.” Clearly, banks working together to prevent cybercrime is paramount for the protection of its assets and reputation.
Despite the potential benefits of transnational cooperation, issues still remain. Andrew Beckett, managing director of Kroll’s Cyber Security, states, “One thing that is holding back big business is the lack of coordination globally and ever-increasing standards. It’s also a delicate balancing act: businesses have to weigh up the cost of complying, the potential fines and the loss of a business license –on a global scale - with the level of risk that they face” (Labbe 2). For example, the European Union, Singapore, and United States all have different definitions of cyber preparedness and countermeasure effectiveness. International standards have been enacted; however, individual organizations and banks must determine their own level of risk and how to address such discrepancies. Often, they must abide by several sets of laws from several different countries, thus blurring the lines of international banking.
In spite of the lack of a definitive framework for financial institutions, banks have found ways to prepare for cyber attacks without the risk of breaking international standards. “Cyber war exercises” such as Quantum Dawn and Sheltered Harbour served as simulations for more than 80 international financial institutions in 2016 (Labbe 3). Backed by government funding, this activity served as an unprecedented security exercise to help improve the industry’s resiliency and readiness against cyber-attacks. More specifically, the Sheltered Harbour Initiative acts as a safety net for banks by protecting and redeploying customer data if an attack were to happen.
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