Information Technology Risks in Financial Services
What board members need to know and do
Boards’ risk-related responsibilities at financial services companies have intensified, with governance of Information Technology (IT) risk becoming increasingly critical. However, IT risk may be the one risk that the typical financial services board member may be least prepared to oversee. After all, few directors are chosen for their expertise in IT, and many think of IT risk somewhat narrowly – that is, in terms of cyber-attacks and system availability – when in fact IT risks permeate the company.
To address technology risks, board members do not need to be experts in IT, but they do need to understand the IT landscape well enough to oversee and challenge management.