Page 83 - SC SCAR 2023 ENGLISH Flipbook

PART 3 STRENGTHENING THE SUSTAINABILITY AND COMPETITIVENESS OF THE CAPITAL MARKET
ENHANCING TECHNOLOGY AND CYBER RESILIENCE
Digital revolution has ushered in a new era marked by connectivity, convenience, and innovation. Consequently, an increasing number of capital market entities have harnessed these technologies to conduct their business. However, with the rapid adoption of technology, particularly in the capital market industry, the landscape is not without its challenges. Technology and cyber risks and threats are becoming more prevalent. To strengthen technology and cyber resilience, the SC has embraced a comprehensive four-pronged approach (1) cyber threat intelligence and awareness; (2) capability development; (3) policies and guidelines; and (4) audit inspection.
Cyber Threat Intelligence and Awareness
In today’s digital landscape, where cyber threats continue to escalate in sophistication and scale, it is imperative for organisations to adapt and fortify their defences. Lack of capabilities in managing cyber threats could cause organisations to be vulnerable and exposed to cyber predators attacking for their advantage. As technology evolves, so do the tactics employed by cyber predators, making it crucial for businesses to stay ahead in the cybersecurity game.
Recognising the pressing need, the SC takes a proactive approach by publishing its Cyber Threat Intelligence and Awareness (CTIA) analysis bi-annually to share observations on the evolving cyber risk landscape within the Malaysian capital market. The goal is to demonstrate commitment to the security of the capital market by providing the industry with timely and accurate information that will enable the organisations to prioritise resources, at the same time to better prepare them and enhance their understanding of potential cyber threats.
Cyber-attacks analysis of global trends in 1H 2023 revealed that ransomware accounted for a staggering 34% of reported incidents globally, followed closely by data breaches at 21%, and malware at 15%. Notably, similar trends were observed in Malaysia, with ransomware constituting 31% of cyber incidents, data breaches at 27%, and malware at 15%. These statistics underscore the gravity of the cybersecurity challenges
faced by both the world and the nation. The cyber-attack analysis also sheds light on some distinctive trends within Malaysia, specifically the rising occurrences of mobile attacks and supply chain attacks. These observations align with the findings presented in the SC’s 2H 2022 CTIA report. In that report, both mobile attacks and supply chain attacks were prominently acknowledged as burgeoning threats to the societal landscape, emphasising the need for vigilance and preparedness in these domains.
Capability Development
The insights gleaned from the SC’s assessment of global and local threat trends have reinforced its commitment to enhance the preparedness and response capabilities of capital market entities. By aligning the content focus of SC Capital Market Cyber Simulations (CMCS) with the emerging threat landscape, we ensure that the exercises directly address the most pertinent and pressing challenges faced by the industry. This synergy between threat analysis and content development not only facilitates a more targeted and effective approach but also strengthens the overall resilience of the sector, allowing the SC to be better prepared in the ongoing battle against cyber threats.
In essence, the SC’s decision to align its capability development exercise with the threat landscape analysis is a proactive measure to empower capital market entities with the knowledge and skills required to mitigate risks and safeguard the integrity of the financial industry.
Policies and Guidelines
Looking ahead, technological advancements and changing consumer behaviours will continue to shape the future of the capital market. More capital market entities are embracing technology as the digital revolution reshapes the business landscape. Technologies like blockchain and AI are revolutionising traditional financial systems, paving the way for more transparent, efficient, and decentralised financial ecosystems.
As such, capital market entities need to proactively addresses the potential technology risks, including
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 81