Fintech - Warning Market at Risk

foreign [Music] it is great to honor great pleasure to be here I really would like to thank all the organizers of This Magnificent event I would like to also to thank all excellencies to make this event possible and even yesterday night has been a magnificent event thank you very much I thank the panelists that are with me today and every single person today on this fantastic audience so thank you very much before I start asking some questions to the panelists here I really would like to give a brief introduction on cyber security because we are in the finance week I start to give some background information on the financial sectors which is of course various Sports and very vulnerable when it's down to cyber threats and cyber risk now if we look to statistics in the last five years the financial sector is always in the top three industries by number of attacks received uh the reason is that the type of data that we handle in the financial sectors are all very valuable and very sensitive data because among other things we handle data which have to do with AML kyc information banking data source of wealth of our customers and of course Financial Assets Now most of the cyber attacks are financially driven in 70 percent of the cases and this is make the financial sector an obvious Target for cyber criminals the second things I would like to mention uh which is I think more remarkable is that if we look to statistics about cyber risk in the broader economies unfortunately the data are very warrants on in fact just to give you some example just taking the latest reading which has to do with 2020 data versus 2020 the 2022 they are not yet available we can see basically that cyber risk has been increasing dramatically and cyber threats have been increasing dramatically in our economies just to give you some figures here if we take as an example zero days type of cyber attacks this is a very sophisticated type of cyber attacks which relies on new detected vulnerabilities detected by cyber criminals unfortunately they basically have been increasing by twice just between 2020 and 2021. if we take ransomware which is a very popular form of cyber attacks and very popular also unfortunately in the financial sectors ransomware have been increasing by five times between 2016 and 2021. if we look into attacks against corporate networks the increase has been by 51 percent between 2020 and 2021. I must say that these data are very bad every single year I will expect that this same partner will happen once we are going to receive the 2022 data the question we have to ask ourselves is why the economies is suffering this tremendous increase in cyber risk and cyber threats and the answer to that is not that all of the certain cyber criminals are increasing in numbers that's not a good answer I will answer to that by saying that we start the fourth Industrial Revolution we started a big digitalization journey and in fact we started the so-called digital economy and the digital economy is about companies becoming more digital it's about companies becoming a bit more of a tech companies if we think today we are in fact into the fintech session of the finance week and what if inter companies does of course I think the companies deliver in full their product and services in a fully digitalized manner so it's 100 of the products and services which become digitalized this is so-called also digital native as much as a regtech is a digital native once we look though to more traditional more established Financial players we can also argue that because of Legacy systems the more traditional Financial players are shifting towards more digitalized type of approach to delivering their services so we can today witness that all the financial sector is moving towards this journey towards an increased digitalization which by the way expose our society and our business towards an increase in cyber risk and cyber threats the consequence of I will say of that this journey is not just that there is an increase in cyber risk that's not what digitalization is about digitalization is about that we increase the amount of Digital Data that we produce as business and the Digital Data is the biggest output of today's digital economy Now by looking to the Digital Data I think the most important things to realize that Digital Data are very valuable because we can unlock knowledge out of the Digital Data we can extract information we can from use this information to increase our efficiency our productivity and this is why we started this digital Journey there are a lot of benefits Associated so all of the sudden the digital data which are the biggest output of our economies are also the biggest input of our economy they are the fuel that is propelling our digital economy and if I can make a comparison they characterize our economy the fourth Industrial Revolution as much steam has been characterized in the first Industrial Revolution as much electricity has been characterized in the Second Industrial Revolution as much the hydrocarbons has been characterized in the third Industrial Revolution so the the data are so valuable today because they are transforming our business in in a profound manner what we need to think about when we deal with data is that they are increasing and exponential rates because of iot type of technology that we are around deploying and also because consumer habits and all because oh this is digital transformation just to give you an example we used to store around two zettabytes of data just in 2010 and by 2025 our economies will produce 181 database this is an increase of 90x and the main question which should ask ourselves is where we store this data in a scalable manner in an efficient manner then we can use to extract this information that can release more knowledge around our business our societies and the answer is that we started a journey towards Cloud because every company is now start to look into clubs to store this data government has started to look into Cloud to Source data and in the cloud we also find the Computing capabilities that we need to analyze the data and also we find these amazing Algos which are to do with machine learning and artificial intelligence which they really are making all this Automation and this big digital transformation that just to give you a number AI alone is expected to contribute to the global GDP with 16 trillion this is 16 increase in global GDP uh just to conclude uh so the Journey of digitalization uh from one side bring an increase in uh cyber risk an increase in cyber threats but we can mitigate the Cyber risk through stepping up cyber security and change the culture of our boards of our companies on the other side by analyzing this data by extracting the information by using AI as an augmented intelligence in our economy we can really create a extra wealth for our economies and with this economies that is moving towards a more cloud-centric model I just asked the first question to Christina here because Google is one of these very Powerhouse of cloud and digital transformation used by many governments companies millions of customers and of course Google has a big responsibility in securing data and also the biggest responsibility about data privacy and and clients need to be reassured that the data that they're moving into Google Cloud this is not used by Google as well so my question to Christina is how you secure and protect your customer and how you protect their privacy thank you very much Christina hi hello and thanks everybody for having me today and to answer your question I think it's important to start you were saying about how Financial entities are getting more and more in danger or attacked during these days if you think about it actually Google is probably the more attack place in the world but it's also the place that we protect more people in the world so in terms of numbers Google keeps more people safe online than like anyone else I think I can say we're talking about 1.5 billion users devices that are protected each day from malware from social engineer with the Google safe browsing but as well we have 2.

5 billion of active Gmail users and we protect them against fishing malware response so we have all embedded Security money security monitoring so what happened what I'm talking about is that we have a scale that actually has a responsibility with it and that has enabled Google to deliver certain pioneering approaches to the cloud native security and this will bring to the Enterprises everywhere that we can operate they operate so we have an incredible scale of data processing analysis approach AIML and then we have the focus on eliminating this entire class of threats so bring in Enterprise customers the tools the insights and also with Partnerships so we can transform the security of our customers to meet the requirements because we know that we are in such a quick and Rapid transforming world that we need to be constantly working and we also have this cultural we we call it security culture and that comes internally that starts with all the employees so from the hiring process from The Emporium boarding from the ongoing training is very very apparent in the customer or the company-wide culture and events that we need to raise awareness of security and privacy so we have a dedicated security team and a privacy team and I just have to say like working with the Privacy team is like you know passing controls as you can imagine you you on the financial sector you know this very well but we have it in every single sense we have collaboration with the security research Community we have internal audits compliance Specialists and what I think is what everybody think about it when they think about Google is data privacy and sovereignty and what how that affects Google Cloud so and and I think it's important to differentiate between Google and Google Cloud because Google Cloud includes security controls that you can use to help protect privacy and sovereignty of the business data so we have access transparency access approval sales VMS confidential Computing um so everything requires that you review that you approve every single Google access to your customer data so that's that's not up to us it's up to it's up to our customers and we create workloads and designed to comply with all the global privacy standards and you can imagine what will happen if we don't like Google will make the news I think first thing in the morning anytime and I don't think that we've seen it but we have seen it so it seems like we're doing something correctly and we have to protect the data privacy and we have that responsibility through all the data life cycle we use very strong encryption so I want to be very clear in terms of like the commitment that Google has to our customers about the data and I think like we we have these rules and we study from the very beginning when we start and we keep it as kind of like our Mantra uh which is like rule number one the data belongs to you and to nobody else we don't sell customer data to third parties we don't use customer data for advertising your data is your data and Google advertising and Google Cloud are two different companies your data is encrypted is at rest at all times you you don't have to ask like oh my God can you do this no it's all the time and if you want we can give you ways to actually happen the additional encryption with certain industries or certain countries require on top of that we have very specific rules against inside their access there's no back door there's no secret government access and we take pride in our International audience and we deliver results on requests so I think these are the most important rules in our mission of digital transformation so at the end we want to help and as Google and Simone was saying we do have a big responsibility into helping companies to drive that digital transformation so without the trust we couldn't build these great things and we if if any company has a kind of like scrutiny regarding Trust Google is like a million times higher in that sense so I will say you know the work of the Google security teams that happen behind closed door so you know we do intersect government backed cyber attacks we take the job of hacking Google actually to strengthen our own defense um and we publish it all of that you can actually check it we do have some type of past and blocks and everything and how do we hack our own data as well um so I think like we're very proud to say that again Google keeps more people safe online than anyone else in the world thank you Christina Adrian I have a question for you as well very similar g42 is a leading company on artificial intelligence also in the use of very Innovative Technologies how you can protect your customer data the security of your clients firstly uh thank you Simone for having me on the panel it's a pleasure to be here today look I want to start with a little bit of context we're seeing this Global threat landscape expanding year on year you gave a statistic around the amount of attacks doubling between the last few years we're also seeing that on the vulnerability side as well as publicly disclosed vulnerabilities have been increasing year on year and they're pretty much doubling over the last five years the attack surface is is growing uh rapidly now when you put it in the context of banking the Banking and Financial sector holds an enormous amount of information that's of value to malicious actives and this is uh further complicated in the financial services sector when you start to think about banks are multiline businesses they run many different applications which require quite a complex set of systems to run these applications and business to support these business processes and that creates an even greater furball of complexity so to speak so in that respect banks have a very difficult time to manage such a large attack surface and this is further compounded by activities such as transformation you mentioned the digitization movements many banks want to digitize therefore are transforming and often running Legacy and contemporary systems in parallel that means complexity that means a greater and expanded attack surface on top of all this if you think about it from A bank's perspective they also have this second uh parallel thread which is around the Regulatory and compliance obligations so it's a complex world for uh for Banking and Financial organizations so one solution is you go it alone and attempt to build up that critical mass or that army of capability attempt to grow economy of scale and economy of scope as as this landscape changes the other alternative is you partner with those organizations that have the competency and have the scale the economy of scale and see across industry and can manage some of these things in a sustainably sustainable and uh and economically efficient uh fashion so at g42 Cloud this is where we partner with many banking organizations and as everyone knows in Cloud security is absolutely a shared responsibility and depending on where in that Spectrum you're consuming those native cloud services that balance of responsibility changes so g42 Cloud we've developed over 90 in-house Cloud native Services we're trusted with some of the most sensitive data in the country our proximity to the regulator allows us to create industry aligned and Industry compliant Solutions and take some of that compliance and Regulatory burden off our clients to enable them to focus on their Core Business objectives rather than scaling out huge teams to uh to deal with some of the the security obligations on top of that g42 cloud our we are a sovereign Cloud right and our mission is to continue to expand the benefits of sovereignty across certainly the UAE and Middle Eastern regions we have external Assurance around ISO to 27001 Cloud security alliance with the star program as well as for more relevant to the Banking and Financial Services industry PCI DSS so we'll continue to uh to help some of our clients take on those regulatory uh and compliance burdens that a lot of this attack surface opens our customers up to thank you very much I asked a question to Professor Barbara I know a professor that you are publishing you have a publication on corporate governance you see it so in your career you have been seated in 40 supervisory boards how much cyber threats and cyber security are affecting the corporate governance and eventually what is happening at corporate corporate boards type of level thank you thank you ladies and gentlemen good afternoon you need to use the mic Johnny we cannot hear you well you need to use the mic yeah okay thank you so ladies and gentlemen good afternoon I have prepared the sound slide and a report to the of course you can have but due to the fact that you have five minutes and try to summarize the most important Concept in in terms of corporate governance uh as everybody knows uh corporate governance is a very important not only to manage the company in a virtuous way but also to to manage the company in compliance with regulation and the law of course specifically board and directors should monitoring any kind of risk and especially of course cyber's risk given to the potential damage I'm talking about financial reputational legal that the attack can cause to the entire organization so consequently we certainly can't say that it is necessary that cyber security becomes an integral part of the culture of the company no way to do so a company cyber security compliance must begin well before any cyber incident this means that the board and directors need to understand and approach cyber security as an enterprise-wide risk management issue not just a technology issue the sector regulation is not yet to provide for specific obligations and liabilities for the company's directors however if they do not Implement appropriate security action or comply with the obligation imposed by the provisions they may be liable for the breach of the general duty of care so let me me say what in my opinion board and directors have to do yeah the least a short list directors should understand and the legal implication of a cyber risk boards should we have adequate access to cyber security expertise and the discussion about cyber risk management should be given a regular another way time on board the meeting agendas directors should set the expectation of data management will establish an Enterprise why the Cyber risk management framework with other weight Staffing and budget board management discussion about cyberdisk should include identification of risk to avoid with to accept and which to mitigate or transfer through insurance as well as a specific plane associated with each approach so at the end it is important not to forget information floors information flows from the Security operation Department without information flaws nobody can evaluate and discuss anything to take informed action we might have a very last one minute so yes Christina what is in your opinion the biggest Trend right now in cyber security you need to be very brief Christina we have 60 seconds sorry I know it's a big question but please thanks sorry so um I mean I think like the biggest trend in cyber security I do it quite fast well I think we are still at the breaking point um in which traditional Security Solutions cannot longer scale but we have a lot of complexity with all the modern Technologies environment so this comes with alert fatigue pricing cost Supply chains security concerns and mainly Talent short shortage which is a big problem I think for for all of us and balancing the act of security we need against all that developer velocity and the business Innovation is how we need to combat this and we I see organizations that are looking to invest in all these security capabilities so they want to provide what we call invisible security War rails so that doesn't destroy the developer Freedom which is something we see all the time so is that desire of the customers to invest in different solutions that can help like examples would be these civil drugs for us that that will be probably my main point and I I stopping here so is that we have time for the rest thank you very much thank you all the speakers thank you all the audience thank you very much [Applause]