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Financial Institutions Will Face the Cybersecurity Hot Seat in

2015

By Todd Weller, VP, Corporate Development, Hexis Cyber Solutions

In 2015, financial institutions can expect to have their
cybersecurity practices put to the test in every sense
of the word. Bank cyber defenses will be tested not
only by the highly evolved insider and outsider threats
that are constantly working to breach financial
networks, but also by the regulatory exams to which
the New York Department of Financial Services
(NYDFS) will subject them.

To this end, the NYDFS recently announced that its
New Cybersecurity Examination Process for the banks under its jurisdiction will require all of the
relevant institutions to undergo a rigorous cybersecurity exam to ensure they are at the forefront
of network security, The National Law Review reported.

Turbulent 2014 leads to increased emphasis on financial institution cybersecurity
The NYDFS exam comes after a year in which several banks and financial institutions found
their networks compromised by attackers looking to steal extremely sensitive financial
information and intellectual property. The regulatory body imposes exams on other areas of
financial and banking operations, but 2015 will be the first year where a separate exam
specifically for cybersecurity is required.

The National Law Review looked at an official letter from the NYDFS and found that the
examinations are designed to encourage institutions to make cybersecurity an integral part of
their overall risk management strategy, rather than just a subset of IT strategy.

Results of the cybersecurity exam could be made public
It would behoove all of these institutions to take this test seriously, especially in light of the news
that the Securities and Exchange Commission could make the exam results public, The Hill
reported.

The implications of this should not be lost on the organizations that will be subject to the exam.
If a financial institution or bank gets poor results on the cybersecurity exam and those results
get published for the public to see, it could have a major impact on that organization's ability to
drive new business or even keep existing customers on board.

5 Cyber Warnings E-Magazine – January 2015 Edition
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