It’s coming from cyberspace and it’s not some kind of digital UFO. Greg Medcraft, chairman of the board of the International Organisation of Securities Commissions in the U.K., predicts the next big financial shock will invade the business world via the Internet. In a recent article by Sam Fleming in the Financial Times, Medcraft and other experts outline how the world is not prepared for the emerging threat to cybersecurity.
“Cybercrime has a huge potential impact on markets,” Medraft told the paper. He said that regulators are thinking about ways to prepare firms and assess whether they are managing these risks appropriately, including creating a global “toolbox,” building on a U.S. approach. (The U.S. Securities and Exchange Commission announced in April that it would be examining more than 50 broker-dealers and investment advisers on their cyberresilience, reports Fleming.) “The starting point is to look at what the Americans have done … and look at those risk-management principles and see how they could translate globally,” Medcraft told Fleming.
