Cyber in Financial Services TheCityUK Cyber in Financial Services 8th December 2016

About TheCityUK – who we are TheCityUK champions UK-based financial and related professional services. We are a membership body, lobbying on the industry’s behalf, producing evidence of its importance to the wider national economy. We seek to make the UK the most competitive place for financial and related professional services to grow and locate their business TheCityUK produces evidence-based policy proposals on the issues that matter most to our industry, our members and the customers they serve. We promote open markets and seek to create the conditions which lead to business opportunities and economic growth. www.thecityuk.com @TheCityUK

Deploying our message through the media Credible support for EU from a City heavyweight “…TheCityUK attracts heavy-hitters and has credibility…” Anthony Hilton, Business & Finance Commentator, Evening Standard – ‘City Comment’ “…the City’s most prominent lobbying group…is regarded as doing an effective job…” Mark Kleinman, City Editor, Sky www.thecityuk.com @TheCityUK

Profile of financial services in the UK UK financial services Financial and related professional services employ 2.2 million people across the UK Our industry contributes 11.8% of economic output, 12% of tax Banks provide 80% of funding for SMEs TheCityUK members About 200 members Our membership spans the spectrum of financial and related professional services from banking to insurance to asset management, private equity, exchanges, accountants, advisers, legal firms, payment firms. Technology in financial services Having a rapid and increasing impact on our industry, both threat and opportunity Around 40% of financial services activities and 35% of professional services activities can be automated by adapting existing technology Biggest threat is Cyber www.thecityuk.com @TheCityUK

Meeting Challenges, Delivering Opportunities www.thecityuk.com @TheCityUK

Meeting Challenges, Delivering Opportunities www.thecityuk.com @TheCityUK

Work with Cabinet Office and Marsh Key questions: Cyber Security Work with Cabinet Office and Marsh Key questions: Nature and scale of threat Steps to greater resilience How to promote exports UK competitive advantage but critical to organisational innovation Goes beyond insurance Next steps Recommendations Board engagement with Cyber risk Increased industry collaboration and information sharing Support development of the UK Cyber sector Industry and government to invest further to widen the pool of available talent Encourage wider adoption of existing cyber hygiene Develop an appropriate regulatory environment to manage Cyber risk www.thecityuk.com @TheCityUK

Cyber Security: why is it important? Everything in FS is digital. Digital is THE channel Threat increasing faster than resources to deal with it How do we get ahead of the criminals and those who would do harm? www.thecityuk.com @TheCityUK

Cyber Security: Leaders first Thinking like a cyber attacker is fundamentally important It is an asymmetric fight, with the probability that the attacker has assets on the inside Walls don’t work anymore We need to be willing to bring the fight to the enemy…the cyber attacker Has to be on the Board agenda Most C-Suite executives are not from a cyber background Simply increasing the spend is not enough Board engagement and ownership is key When an attack happens the C-Suite will be the centre of attention www.thecityuk.com @TheCityUK

Cyber Security: information sharing Why? Because its not Intellectual property Intelligence not simply information www.thecityuk.com @TheCityUK

Cyber Security: cooperation Private sector informs Government disrupts Govt needs intelligence Build capability to disrupt National Cyber Security Strategy Centres of Excellence like Skolkovo Build, buy, learn Israel, USA www.thecityuk.com @TheCityUK

Cyber Security: skills and talent Understand the issue Understand the people involved Use the pathways that exist Win-Win www.thecityuk.com @TheCityUK

Cyber Security: Cyber hygiene Cyber Essentials 80% of attacks Small companies – Cyber Essentials Medium companies – NIST / ISO GSFI – CBEST CBEST success www.thecityuk.com @TheCityUK

Cyber Security: the right regulation Work with Regulator Eco system Information sharing Stability www.thecityuk.com @TheCityUK

Summary Points Key insights Technology is a huge potential competitive advantage and is changing our industry Needs to be considered in a broader context than banking Innovation has always been part of financial services but pace of change is important Importance of agility Learning from other industries Interoperability Technology is about your people, not just your systems Skills and talent Culture Security Senior level sponsorship and engagement with digital transformation is key for success www.thecityuk.com @TheCityUK