Developing a Risk Management Framework for Cybersecurity in Financial Reporting
Keywords:
Cybersecurity, risk management frameworkAbstract
Integrating cybersecurity into financial reporting has become essential in an increasingly digital world. As financial data is a prime target for cyber threats, financial institutions must develop robust frameworks to manage and mitigate risks associated with cyber incidents. This paper explores the development of a comprehensive risk management framework tailored to cybersecurity challenges in financial reporting. The framework addresses core areas such as identifying critical assets, assessing vulnerabilities, and establishing controls and response strategies. It emphasizes proactive threat monitoring and response planning to protect sensitive financial data and ensure reporting integrity. Key components include risk assessment, incident response, and compliance with regulatory standards such as the Sarbanes-Oxley Act, which mandates controls to safeguard financial data. The framework also outlines the importance of continuous monitoring and employee training, stressing that human error is a significant risk factor in cybersecurity. Additionally, it underscores collaboration between cybersecurity and financial reporting teams to foster a unified approach toward data protection and transparency. By applying this framework, financial institutions can enhance their resilience to cyber threats and ensure that financial reports remain accurate and reliable, upholding investor confidence and regulatory compliance. This paper provides a practical guide for financial institutions aiming to implement a cybersecurity risk management framework that aligns with industry best practices and regulatory expectations, addressing the unique intersection of cybersecurity and financial reporting.
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