UBS flags cyber threats as a risk on par with credit and market exposure
As banks deepen their reliance on digital systems, cyber security is becoming a core risk management priority alongside more established financial threats. UBS Chief Executive Sergio Ermotti says attacks are rising exponentially across the sector, increasing the operational cost of innovation and digitalization.
Highlights
- UBS Group CEO Sergio Ermotti states that defending against cyber attacks is now as important as managing credit and market risks for banks.
- Ermotti highlights an exponential increase in cyber threats, attributing the rise to greater innovation and digitalization across the banking sector.
- Operational resilience, governance, and rapid response capacity are becoming central to risk frameworks as banks treat cyber defense as a strategic management issue.
Cyber risk moves to the center of bank oversight
As reported by Bloomberg, Ermotti says defending against cyber attacks has become as important as, if not more important than, managing traditional credit and market risks for banks. He makes the remarks during a panel at the Hong Kong Monetary Authority’s Global Financial Leaders’ Investment Summit.He says cyber threats are increasing "exponentially" as attacks become more frequent and more sophisticated across the banking sector. Ermotti adds that this is "the price to be paid for all this innovation and digitalization."
Governance and response capacity gain importance
Ermotti says good governance, clear accountability and the ability to react quickly are essential in this environment. His comments underline how operational resilience is taking a larger role in bank risk frameworks as digital transformation expands across the industry.The remarks also point to a broader shift in financial services, where cyber defense is increasingly treated as a strategic management issue rather than only a technology function. For banks operating across multiple markets, that raises the importance of oversight, internal controls and rapid incident response.
Our earlier report on the Bank of England’s push for “bare metal” cyber recovery planning explained why regulators want banks to be able to restore critical services even if core systems are compromised. The article highlighted how advances in AI are amplifying the scale and complexity of cyber attacks, prompting supervisors to press lenders for deeper resilience and end-to-end recovery options across key banking functions.
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