The Risk Universe is a website and a monthly digital magazine that seeks to shed some much needed illumination onto the world of operational risk management.

Special Alert : EDITOR'S LETTER: Good risk management is not a blame game
As the aptly named WannaCry ransomware rendered hundreds of thousands of computers across the globe useless last week, the world scrambled to find someone to blame. I’m not talking about the actual perpetrators here – whoever released this malicious software into the public domain. I’m talking about the people who were expected to prevent this kind of catastrophe from happening at all.

As news emerged that WannaCry works by exploiting a vulnerability in Windows operating systems, naturally the accusatory finger was pointed firmly at Microsoft. But, after a hastily penned blog post from Microsoft’s president and chief legal officer Brad Smith, we all knew who was to blame: those irresponsible eejits at the NSA, stockpiling a cornucopia of hacking goodies so vast it had all the cyber criminals rubbing their hands together with glee. Or, wait – what about those in charge of keeping computer software up to date? After all, Microsoft released a patch in March to ensure this would never happen. What were all those so-called ‘IT experts’ thinking?

Anyone who works in computer security or risk management will know that being on top of cyber security carries its own costs. As our timely piece on IT and operational risk (The change dynamic, page 24) highlights, making changes to IT, however small they may seem, is a complicated process. Stakeholders don’t tolerate business interruption very well, especially if it’s caused by those box-ticking, anti-profit jobsworths in IT security, operational risk, or compliance.

Of course, firms really do need to ensure they’re using the most up-to-date software and must prioritise cyber risk and IT maintenance. But placing blame doesn’t fix anything. It only serves to show how out of our depth we are when it comes to meeting the cyber challenge.




Latest News

BNP Paribas and Deutsche fined for forex collusion

South Korean regulators have fined BNP Paribas and Deutsche Bank a combined 176m won for collusion in currency markets, reports the Korea Herald.

SEC charges former head traders at Nomura

The Securities and Exchange Commission has charged a pair of former head traders who ran the commercial mortgage-backed securities (CMBS) desk at Nomura Securities International Inc. with deliberately lying to customers in order to inflate the profits of the CMBS desk and line their own pockets as a result.

Seven banks said to be focus of Mexican bond investigation

Mexican authorities are reportedly investigating seven banks for price manipulation in the country’s bond markets.

Firm fined for 100 million nuisance calls

A company behind 99.5 million nuisance calls has been fined a record £400,000 by the UK Information Commissioner’s Office (ICO).

SFO seeks files from Societe Generale in relation to Libya bribery allegations

The UK’s Serious Fraud Office (SFO) has reportedly sought documents from Societe Generale in relation to an ongoing row between the bank and the Libyan Investment Authority (LIA). Just days before, the bank agreed to a €963m settlement to resolve a bribery lawsuit.

HSBC settles bondholders' Libor manipulation lawsuit

HSBC Holdings has settled a private lawsuit from a group of US bondholders claiming it conspired to rig Libor rates, according to a New York court filing.

Judge approves SAC Capital US$135m settlement

A judge has approved a US$135m settlement to be paid by SAC Capital Advisors to a group of disgruntled investors, drawing a line under insider trading allegations made against the now defunct investment company.

Lloyds faces £80m hit over new mis-selling scandal

Lloyds Banking Group may have to pay out more than £80m in compensation to investors who were mis-sold products by the firm.

Deutsche Bank fined for delaying news of ex-CEOs' departure

Deutsche Bank was fined by German financial regulator BaFin for delaying the announcement of former bank CEOs Anshu Jain and Juergen Fitschen's resignations, Bloomberg reports.

NHS ransomware attack spreads across the globe

The major global cyber attack affecting more than 150 countries earlier this month has highlighted the widespread problem of legacy systems in organisations across the globe.

Hedge funds face US probe over bond valuations

US regulators are looking into possible misconduct at a number of Wall Street hedge funds.

Barclays fined US$97m for overcharging clients in the US

The US Securities and Exchange Commission (SEC) has announced an enforcement action requiring Barclays Capital to refund advisory fees or mutual fund sales charges to clients who were overcharged.

 
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