India must have a cyber security framework: Deloitte -Governance Now

India must have a cyber security framework: Deloitte

Cost of cybercrime can be up to $575 billion per year, says report

GN Bureau | August 17, 2017

#cyber regulation #Deloitte #Cyber security #Cyber crime #electronics and IT #digital

(Illustration: Ashish Asthana)

In absence of proper regulatory and supervisory capabilities, some regulators in Asia-Pacific region believe the next financial crisis might be triggered by a cyber attack, said a new report on cyber security.

According to Deloitte's ‘cyber regulation in Asia Pacific’ report, cyber attacks are increasing in frequency and sophistication and it is estimated that the cost of cybercrime can be up to $575billion per year, and the financial services sector is a key target. The report was released on August 17 across the globe.

"Cyber risks are only set to increase as financial institutions become more data-driven digital businesses, and as more financial services are delivered online. If cyber risks and responses are not well managed, it could even threaten the stability of the financial system,” said Kevin Nixon, global & Asia-Pacific leader, centre for regulatory strategy, Deloitte.

Only those financial institutions who have robust cyber security and cyber risk management will be able to retain customers, maintain trust and enhance their competitive edge, Nixon said.

On cyber regulations in India, Deloitte stated in the report, “Even though India is making leaps and bounds on the ‘Digital India’ initiative, it still does not have a cyber security framework.”

“The government has introduced the National Cyber Security Policy in 2013 to provide an umbrella framework for defining and guiding actions related to cyber security… While the policy was well received, it has lacked an implementation framework and is yet to be adopted by (electronics and IT) industry,” the report noted.

Regulators and agencies are scrambling to conduct cyber audits of IT and network infrastructure of their respective sectors in order to identify the gaps and to put in place remedial measures, said Shree Parthasarathy, partner – risk advisory services, Deloitte Touche Tohmatsu India LLP.

“While we go digital, India Inc and the government have to embrace the fact that cyber security is not an option. We need to accelerate the pace of implementation of security measures, before it is too late and before citizens start losing trust the system,” he said.

The report noted that India's financial services regulators have been active in the cyber security space.

As early as 2011, the RBI released a comprehensive set of guidelines on information security, electronic banking, technology risk management and cyber frauds.

In June 2016, the RBI issued a circular on cyber security frameworks in banks that sets out detailed guidelines for such financial institutions.

“The RBI is also planning on conducting annual cyber audits and has established a specialised cell (C-SITE) to conduct detailed IT examinations of banks' cyber security preparedness, to identify the gaps and to monitor the progress of remedial measures,” the report said.

It also highlighted the work being carried out by Insurance Regulatory and Development Authority and Securities and Exchange Board of India in cyber security.

Comments

Other News

Tech firm, telcos prepare to enter 5G era

As the government is set to roll out the 5G spectrum auction, the network providers are also equipping 5th generation network-ready LTE technology. According to the government, the technology would have an impact of more than $1 trillion on the Indian economy. It is also expected to transform educati

On a personal note: Rabbi Shergill

Punjabi singer, songwriter, and guitarist, Rabbi Shergill rose to fame in 2004 with his chartbuster song ‘Bullah Ki Jaana’ from his debut album ‘Rabbi’. Inspired by rock and Punjabi folk music, he uses Punjabi language to create acoustic rock-based ballads. His poetic and social

NALCO registers Rs 589 crore operating profit in Q3 of 2018-19 FY

National Aluminium Company Limited (NALCO), country’s leading manufacturer and exporter of alumina and aluminium, has posted an operating profit of Rs 589 crore in Q3 of 2018-19 FY, registering 80 percent growth over the same period of last year. Net profit of the company

Many electronic companies still have no take-back system: Report

In 2016, 44.7 million tonnes of e-waste was generated globally which is expected to increase to 52.2 million tonnes in 2021. As of 2016, it was found out that India is the second and fifth highest generator (in Asia and globally respectively) of e-waste with 2 million tonnes. The mounting pile of e-waste h

India’s per capita power consumption likely to grow by two fold, says power minister

Union power minister RK Singh has said the per capita current power consumption of 1,200 units is expected to grow 2-3 times at par with the international consumption after every Indian gets access to electricity. Singh said the power sector is witnessing an increased demand which is further expect

Net profit of Rs 616 crore posted by SAIL in Q3 of 2018-19

SAIL has posted a profit (profit after tax) of Rs 616 crore in Q3 of 2018-19 FY. SAIL has managed to better its performance over the previous quarter as well by more than 11 percent when it stood at Rs 554 crore. The turnover for Q3 FY’19 improved by three percent over corresponding period of

Current Issue

Video

Opinion

Twitter

Tweets by @governancenow