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Data risks and security in the financial sector: Adapting to a new environment
Journal of Financial Compliance,
6
(1),
49-56
(2022)
Abstract
Huge increases in data generation and storage volumes in recent years, coupled with technological innovations, are changing the nature of data risks in the financial sector. Several factors determine the nature of data risks: (a) the way technology is used; (b) the profile of financial sector entities and their interconnections; (c) the cyberthreat landscape; and (d) awareness and practices among legitimate users of data. How these factors are evolving in an increasingly complex digital environment is described. To manage the changing data risk profile, the EU regulatory framework is adapting. Key regulatory developments in the financial sector include the Digital Operational Resilience Act (DORA) proposal and the recent advice from the European Supervisory Authorities in relation to digital finance. More broadly, the Digital Services Act and the Digital Markets Act aim to create a safer digital space for EU citizens.
Keywords: cybersecurity; data security; digital finance; operational risk
The full article is available to subscribers to the journal.
Author's Biography
Claudia Guagliano works in the Risk Analysis and Economics Department at the European Securities and Markets Authority (ESMA) where she leads the Innovation, Products and Technology Unit in charge of financial and technological innovation, consumer protection analysis and sustainable finance analysis. She previously worked in the international financial relations department of the Italian Treasury and at Consob. She holds a PhD in international economics from Bocconi University, a Masters degree in economics from Pompeu Fabra University and a degree in economics from Bocconi University.
Alexander Harris works in ESMA's Innovation, Products and Technology Unit as a senior risk analysis officer, focusing chiefly on innovation and consumer protection topics. He previously worked as a policy adviser at HM Treasury on tax and budget issues. He holds a PhD in economics from Cambridge University and a Masters in physics and philosophy from Oxford University.
