South Africa: Financial Sector Assessment Program-Technical Note on Cybersecurity Risk Supervision and Oversight
IMF Staff Country Reports, June 17, 2022
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Bibliographic details
- Published: June 17, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400214295.002
Overview
- Publication date: June 17, 2022
- Core theme: Cybersecurity risk in the South African financial system amid increasing digitalization and interconnected cyber and financial ecosystems.
- Context: Digitalization is a strategic priority for the South African financial system; cybersecurity risk is growing in complexity and severity.
Key findings
- Cybersecurity risk continues to grow both in complexity and severity and is a function of an increasingly open and interconnected cyber and financial ecosystem.
- The South African financial system has a long history of incorporating technology; digitalization has become a strategic priority.
- To keep pace with dynamic cyber threats and threat agents, systemically important financial institutions (SIFIs) have made substantial investments in cyber resilience programs (e.g., establishing cyber strategies, frameworks, and governance structures).
- Consistent with many jurisdictions, and partly a result of widespread remote working arrangements implemented in response to the global pandemic, cybersecurity threats to financial stability increased.
- High standards of risk management meant threats did not materialize into significant losses and/or disruptions.
Context and drivers
- Drivers cited:
- Increasing openness and interconnection of cyber and financial ecosystems.
- Widespread remote working arrangements implemented in response to the global pandemic.
- Ongoing digitalization across financial services.
Institutional response and resilience
- Systemically important financial institutions (SIFIs):
- Have made substantial investments in cyber resilience programs.
- Have established cyber strategies, frameworks, and governance structures to manage evolving threats.
- Outcome:
- Despite increased cybersecurity threats, high standards of risk management mitigated materialization into significant losses or disruptions.
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