Dive Brief:
- More than half (53%) of CFOs in the financial services industry rank staying current with evolving cybersecurity regulations as a top concern, according to a recent report by cybersecurity firm Omega Systems.
- Despite heightened regulatory risks, many organizations remain hampered by limited budgets, legacy infrastructure and inefficient manual processes, according to the research. Half of firms still use outdated or on-premise infrastructure, and more than one-third acknowledge that it would take a week or longer to detect and contain a breach.
- “Detection delay has become not just a security weakness, but a compliance liability,” the report said.
Dive Insight:
Financial industry CFOs have faced an “an unprecedented tightening of cybersecurity oversight” in recent years, with new rules from entities such as the Federal Trade Commission and the New York State Department of Financial Services, according to the report.
The trend has eased a bit, at least at the federal level, under President Donald Trump.
In June, the Securities and Exchange Commission withdrew proposed cybersecurity regulations for investment advisers and companies participating in securities markets.
Meanwhile, a coalition of banking industry groups has asked the SEC to also rescind a rule mandating that public companies disclose “material” breaches within four days of a materiality determination.
Omega found that only 38% of CIOs view evolving regulations as a top concern, highlighting a misalignment between financial and technology teams.
“CFOs view compliance as a cost; CIOs view it as a process,” the report said. “Neither perspective, on its own, creates resilience.”
Omega surveyed more than 300 U.S. financial services executives across the U.S.
