TORONTO — Forty-three percent of the audience identified cybersecurity as the No. 1 risk management concern, according to a poll taken Monday during a risk-management session at the Sibos 2023 event this week.
“Our ability to succeed in payments over the long haul is fundamentally rooted in this concept of embracing uncertainty while managing risk,” Susan Hawkins, senior vice president of enterprise payments at TD Bank, said during the panel. “So, heavy investment in cybersecurity, monitoring, global connectivity, addressing third-party risk effectively, collaborating effectively across the industry is required.”
Financial institutions must also consider the evolution of payments technology and risks associated with not upgrading traditional payment platforms, Hawkins said. For example, traditional payment frameworks are not built around monitoring fraud 24/7 in real time or keeping up with global transfers.
“The motivations for investing in new settlement networks, as well as new technologies, are changing from being domestic agenda only to being an agenda that is essentially adjudicated and settled internationally,” she said.
FIs must invest in:
- Cybersecurity strategies;
- Third-party risk;
- New technologies; and
- Global connectivity.
The latter will determine the success of payments technology, Hawkins said.
During the Sibos session, the audience named the following as areas of concern for FIs:
- Third-party and vendor risk (17%);
- New technology (17%);
- Crypto alternatives (9%);
- Interconnectedness (4%);
- Increased speed of onset (4%); and
- Broader access to payment systems (6%).
