SEC harps on need for cyber risks mitigation in capital market

 SEC harps on need for cyber risks mitigation in capital market

In recognition of the risk posed by cybercrime to financial market confidence, integrity and efficiency, the Director General of the Securities and Exchange Commission, Mr. Lamido Yuguda, has harped on the need for a robust strategy for mitigating such risks.

Speaking during the Central Securities Clearing System Cyber Securities conference in Abuja, Yuguda also said the importance of Cybersecurity to the financial sector needs to be underscored because people’s hard-earned income and other financial instruments are saved and invested in it.

He stated: “In the Nigerian capital market, we clearly take issues on cybersecurity very serious due to the increasing volume of data and information that are stored electronically, coupled with the increased adoption of digitization and digitalization options in processing market transactions on daily basis.

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“Today, more of our market activities are conducted through the use of technology than ever before. While this has significantly raised efficiency levels, it has introduced our market’s exposure to a new set of risks, including cybersecurity risk, which we must recognize and manage.”

He noted that the experience of the Covid-19 pandemic, which necessitated the activation of business continuity plans through remote operations, further increased the rate at which stakeholders embrace technology and underscores the critical need to protect the systems from existing and potential threats that are present in cyberspace.

Yuguda stated that cyber-attacks on financial institutions are often with the aim of gaining access to sensitive and confidential information for illicit financial gains. With the increased interconnectivity among financial institutions, a cyber-attack from one location or entity may have an impact on the entire system, thereby compromising the functions and safety of several sectors of the economy.

It is in this regard he stated that the Securities and Exchange Commission (SEC) appreciates the efforts of the Federal Government of Nigeria, through the Office of the National Security Adviser, in developing the National Cybersecurity Policy and Strategy 2021.  

Source: vanguard