Financial Firms Report Sharp Increase in Cyber Preparedness
Financial Services Firms Report Sharp Increase in Cyber Preparedness Efforts and Anticipated Regulatory Scrutiny -- 63% Increase in Respondents Who Believe that Cybersecurity Will be Top Regulatory Focus
NEW YORK, NY April 11, 2017 -- Duff & Phelps, the premier global valuation and corporate finance advisor, today highlighted research affirming that financial services professionals are poised to significantly accelerate resources dedicated to preventing and combating cyber breaches. The survey of nearly 200 senior financial services professionals included the following highlights:
• 86% of financial services firms intend to increase the time and resources they spend on cybersecurity in the next year. This contrasts with 2016, when less than 60% said they planned to spend more resources and time on cybersecurity planning and initiatives.
• 31% of respondents expect cybersecurity to be the top priority for regulators this year -- a 63% increase over 2016 when just 19% of respondents held this view.
• 21% of respondents believe that Anti-Money Laundering and "Know Your Customer" considerations -- which are increasingly converging with cybersecurity and technology -- will be a top regulatory focus.
Jason Elmer, Managing Director, Compliance and Regulatory Consulting at Duff & Phelps, commented: "Cybersecurity is at the top of the agenda for financial services firms today. In the wake of high profile cyberattacks, many are anticipating clearer and more punitive cybersecurity regulation to be implemented. Firms are proactively looking to strengthen cyber defences as a result, and this is an opportunity for regulators to collaborate with financial institutions to form new rules. What's also clear is that commercial pressures from investors concerned about the security of their sensitive data will accelerate any attempt to improve cybersecurity measures. For all these reasons, 2017 is set to be an important year for cybersecurity regulation."
About Duff & Phelps
Duff & Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, real estate, M&A, restructuring, dispute and legal management consulting and compliance and regulatory consulting. The firm’s more than 2,000 employees serve a diverse range of clients from offices around the world.
M&A, capital raising and secondary market advisory services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A and capital raising services are provided in a number of European countries through Duff & Phelps Securities Ltd, UK, which includes branches in Ireland and Germany.
About the Survey
Duff & Phelps surveyed 183 senior financial services executives, compliance professionals and investment managers operating in the US, Europe and Asia. This was conducted in conjuncture with Duff & Phelps' fifth annual Global Regulatory Outlook report and respondents were contacted in Q1 2017.