FOCUS 19 Cyber security
Recent attacks on the industry have shown the real impact that cyber threat can have on the sector through leakage of commercially sensitive information, such as exploration data, and through malicious interference with industrial control systems - it is even now possible to divert a tanker from its course with the right equipment. Managing cyber security as a strategic risk, rather than an operational one, is an important step-change required across the industry to help in driving long-term risk reduction with quantifi able benefi ts.
Often cyber risks are not analysed deeply enough by undertaking scenario analysis to drive an understanding of the practical risk implications, the greatest vulnerabilities, quantifi cation of the exposure, and detailed evaluation of how companies are monitoring and addressing the possibility of cyber attack, beyond simply ranking it as a top risk. Our work with the UK government on FTSE350 cyber risk management shows a need to rethink how cyber is reported upward to the Board, with more open and jargon-free metrics.
Third party risk
All businesses have to interact with third parties that present a range of potential integrity and reputational risks: from customers and suppliers through to agents and local or even globally strategic partners. The increased focus on regulatory compliance – particularly around anti-bribery and corruption legislation such as the UK Bribery Act and the US Foreign Corrupt Practices Act – mean that a sound understanding of counterparties, their ownership and modus operandi, can help prevent illegal activities for which the business may ultimately be liable. Thereby reducing the risk of public censure, fi nes or even executive prison time. A fl exible, responsive third party risk management programme, based on appropriate levels of due diligence, is vital to managing an area of risk that is widely talked about but not always deeply understood.
CYBER SECURITY IS A KEY RISK, IT IS NOW POSSIBLE TO DIVERT A TANKER FROM ITS COURSE WITH THE RIGHT EQUIPMENT!
© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
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