Are cyber risks dampening your drive to innovate? If so, you are not alone. In KPMG’s recent Asset Management CEO Outlook report, 77 percent of respondents said that they are concerned about their vulnerability to cyber-attacks.¹ Nearly nine-in-ten said they are worried about the potential for identity theft and data privacy.
In part, this reflects the fact that many Wealth and Asset Management Boards now recognise that they need a much clearer quantification of their cyber risks and potential impacts. Significant supply chain concentration is leading to accumulated risk. High net worth individuals are becoming a more frequent target of hackers, with theft of wealth data increasingly enabling downstream fraud, extortion and even physical security threats. Digitisation is creating unanticipated vulnerabilities, and AI-enabled social engineering is sharpening the fraud threat.
At the same time, the Boards are striving to get their arms around new and emerging threats like Quantum Computing. The general consensus is that Q-Day is coming; the timeline to a Post-Quantum Cryptography (PQC) world is rapidly shrinking. Quantum will almost certainly bring significant opportunities for wealth and asset managers to innovate. But it will also bring significant new risks.
Not surprisingly, therefore, our conversations with UK Wealth and Asset Management leaders suggest many Boards want to assess whether their cyber security posture is appropriate to support the kind of innovation that they want to achieve across the front, middle and back office.
