Overview
Financial institutions protect trillions in assets and sensitive customer data, which makes them attractive targets for sophisticated cyber threats.
GRC in cyber security offers a well-laid-out approach to protect these vital assets. The concept combines Governance, Risk, and Compliance – three essential pillars that build our defense against evolving cyber threats.
Banks can establish a detailed security posture through GRC cyber frameworks. This approach helps them meet regulatory requirements and manage risks effectively. This piece shows how banks can boost their resilience through smart GRC implementation and proven practices.
Understanding GRC Cybersecurity Framework
The financial landscape changes faster than ever, and banks must adapt their cybersecurity approaches. Financial institutions now pay 2.71 times more for non-compliance than Compliance.
Core Components of GRC in Banking
GRC in banking includes three interconnected elements that build cyber resilience:
- Governance: Establishes frameworks and processes that line up IT operations with organizational goals
- Risk Management: Identifies and reduces potential threats proactively
- Business strategy and processes: Will give a clear path to meet regulatory requirements and industry standards
These components help organizations understand risk better and break down departmental silos.
Integration with Existing Security Systems
Technology integration within GRC systems has made remarkable progress. JPMorgan Chase showed how AI revolutionized regulatory change tracking across 120,000 websites. AI implementation streamlines processes and leads to informed decision making. The integrated risk management (IRM) approach helps manage risks of all types, from cybersecurity to operational concerns. This integration is vital since 60% of financial institutions faced cyber-attacks last year.
Regulatory Requirements and Standards
The NIST Cybersecurity Framework guides organizations with five core functions: Identify, Protect, Detect, Respond, and Recover. Financial services widely adopted this
framework, though it started with critical infrastructure. BCBS239 principles guide the regulatory landscape by strengthening risk data aggregation and internal reporting. Local supervisors apply these standards to Domestic Systemically Important Banks, making them fundamental across the industry. A detailed GRC implementation creates a proactive defense mechanism that adapts to new threats. Organizations can maintain data integrity and operational resilience in this complex cyber landscape.
Cyber Threat Landscape in Banking
Banking sector cybersecurity data shows a shocking truth: banks face cyberattacks 300 times more than other industries. The rise of complex threats now tests traditional GRC cyber security frameworks like never before.
Common Attack Vectors and Vulnerabilities
The banking infrastructure faces several main threats:
- Ransomware and Ransomware-as-a-Service operations
- Phishing campaigns that target customer credentials
- Distributed Denial-of-Service (DDoS) attacks
- Supply chain breaches through third-party vendors
Recent incidents prove how serious these threats are. Hackers managed to steal CHF 70.71 million from Bangladesh’s central bank. Russian banks lost more than CHF 27.06 million in similar attacks.
Emerging Cyber Threats
State-sponsored attacks pose a growing concern. It has been showed that Russia, China, and North Korea target U.S. banking infrastructure more often. The whole ordeal became worse during COVID-19, as the financial sector suffered the second-largest share of pandemic-related cyberattacks.
Impact Assessment and Risk Metrics
The financial toll of these attacks paints a clear picture. Each data breach in this sector now costs an average of CHF 3.88 million. We track this effect through key metrics:
- Mean Time to Detect (MTTD) –measures threat detection efficiency
- Mean Time to Resolve (MTTR) –tracks incident resolution speed
- Mean Time to Contain (MTTC) –reviews threat containment capability
The period between 2021 and 2022 saw a big jump in destructive cyberattacks. This trend highlight why banking operations need strong GRC cyber security measures.
Building Cyber Resilience
Cyber threats are growing. Banks must build resilience through a strong GRC cybersecurity framework, with reliable security architecture and incident response to counter rising attacks.
Security Architecture Design
GRC cyber implementation prioritizes a multi-layered security approach. This architecture includes:
- Advanced encryption protocols for data protection
- Up-to-the-minute monitoring systems
- Access control mechanisms that follow least privilege principle
This detailed framework works. Organizations using layered security report 60% fewer successful breaches.
Incident Response Planning
Detection and containment are vital parts of incident response strategies. Organizations with well-laid-out incident response plans achieve these metrics:
- 45% reduction on Mean Time to Detect (MTTD)
- 62% faster resolution on Mean Time to Contain (MTTC)
- 85% improvement on recover success rate
Recovery and Business Continuity
The 3-2-1 backup rule guides a business continuity approach. Three copies of critical data are kept on two different types of media, with one copy off-site. Organizations with reliable backup strategies are 2.5 times more likely to recover from cyberattacks without paying ransom.
Regular cyber resilience stress tests simulate scenarios where critical IT infrastructure fails. These exercises show that many banks have high-level response frameworks. There’s a long way to go, but it’s possible to build on this progress in recovery capabilities. The commitment to maintain critical banking operations during adverse conditions is aimed to be deepened. This helps ensure business continuity and preserve customer trust.
The GRC meaning in cyber security framework proves effective cyber resilience goes beyond prevention. The focus is on maintaining operational resilience even under attack. This approach has cut our average incident resolution time by 40% and strengthened our overall security posture.
Implementation Strategies
GRC cybersecurity needs technology, human expertise, and continuous monitoring. Delaying training until ransomware strikes leads to higher recovery costs and risks.
Technology Integration Steps
GRC implementation starts by connecting monitoring tools with current systems. Data reveals that 91% of financial services companies now either use or are learning about AI integration in their operations. Leading institutions report excellent results with a 50% reduction in false positives and a 30% increase in actual fraud detection rates. Staff Training and Awareness Annual cybersecurity training alone doesn’t work. The complete training program has:
- Monthly cybersecurity awareness sessions
- Simulated phishing exercises
- Role-specific security protocols
- Vendor and client security education
Security awareness scores have improved substantially since there have been added cybersecurity duties to job descriptions. Monthly training sessions help employees stay updated with new threats and best practices.
Performance Monitoring
The cyber GRC program uses reliable monitoring systems that track key metrics:
- System Logs: Up to the minute threat detection
- User Activities: Access control monitoring
- Compliance Status: regulatory adherence tracking
The ongoing monitoring shows that a mere 1% to 2% click rate on phishing attempts makes organizations vulnerable. It is now required dual-authorization for large
transfers and critical operations.
This integrated strategy has led to better operational efficiency and risk management. The GRC cyber security framework stays dynamic and responsive to new threats while meeting regulatory requirements.
Our Approach
FORFIRM’s approach to implement instant payment focuses on ensuring compliance, building technical infrastructure, enhancing user experience, and providing ongoing support.
Implementation of GRC System for Cyber Risk Management
- Analysis & Planning: assess risk landscape & process gaps; define objectives & project plan; align stakeholders & resources
- Design: develop system architecture; define workflows, risk methods, reporting; identify data sources & integrations
- Implementation: deploy & configure GRC system; integrate with existing tools (e.g., SIEM); test functionality & data accuracy
- Training & Change Management: train users by role (admins, execs, staff); foster adoption & align with workflows
- Monitoring: continuously track & mitigate risks; measure performance & adjust as needed
- Post Go-Live Support: provide technical support & updates; review performance & implement improvements
Compliance Platform for Data Security and Privacy Protection
- Initial Analysis & Evaluation (Gap Analysis): assess current practices vs Swiss FADP & GDPR, identify gaps, risks, and weaknesses
- Definition of Compliance Requirements: translate regulations into operational & technical controls; define policies, access controls, encryption; collaborate across legal, IT, compliance
- Design of Compliance Platform: create architecture & workflows; integrate privacy-by-design; add features like automated checks, incident reporting and monitoring
- Implementation of Security Controls: deploy encryption, access control, audit trails; integrate with existing IT systems; ensure handling of sensitive data
- Testing & Verification of Compliance: validate security measures & system performance; perform mock audits & penetration testing
- Reporting & Incident Management: Generate compliance reports; establish incident response workflows; ensure fast breach detection & resolution
Elisa Sicari
Partner – Digital & GRC, FORFIRM
+41 783356397
e.sicari@forfirm.com
