COUNTY’S 52 percent banks are facing cyber security risks. According to a survey report of Bangladesh Institute of Bank Management (BIBM) a huge number of banks ran the risk of breach in their information management security system in 2016, of which 16 percent were at the highest risk level.
It said a major portion of IT budget of those banks is being used to procure hardware. The portion of expenditure for hardware was 40.4 of the IT budget in 2016. The second highest amount of IT budget went to the software sector; and the spending on security, training and audit was very poor in the last six years. Total number of employees working in the IT department is not sufficient and they are under tremendous stress.
The IT governance (ITG) is gaining importance in the banking sector due to its increasing reliance on technology to conduct their operations, gain customers’ satisfaction and improve cost efficiencies. But banks should give proper attention to follow appropriate guidelines, standards and framework to successfully implement ITG that include protection against hacking and other form of theft. Successful implementation of ITG will also help in achieving sustainable business and offer new innovative products and services to their clients.
In view of the growing threat to cyber security banks’ budget for such security system should be increased by around 60 percent. We can remember the reserve heist of Bangladesh Bank last year that took away $81 million from its New York Federal Reserve Bank account. After that incident most banks are spending a lot to purchase foreign software to ensure security; but they have failed to become risk free yet. If banks use uniform software to reduce cyber risks and financial damage, it could bring a positive result. In that case, the banks can appoint IT specialist in their audit team.
The management of banks should keep it in their mind that they are not owners of the bank, but caretakers of public deposit. So protection of people’s deposit should be their number one task.
