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Growing Incidence of Global Outages Highlights Critical Lessons in Cybersecurity Resilience

Oct 28, 2024

The following article originally appeared in Finance Derivative, and was written by Travis Deforge, Director of Cybersecurity Engineering, Abacus Group

The recent global outage triggered by a faulty CrowdStrike update offers crucial lessons in cybersecurity and system resilience.

For financial services organizations globally, the possibility of system outages and associated downtime is an ever-present threat. In 2024 alone, we have seen other incidents, from the LSEG platform outage to the Bank of America ransomware attack, that have significantly impacted the operations and reputation of firms.

Even advanced cybersecurity systems, when mismanaged or affected by internal issues, can result in substantial disruptions. Financial institutions, with their real-time data processing and heavy transaction volumes, are particularly vulnerable to the cascading effects of this kind.

Financial firms must recognize that resilience goes beyond protecting against external threats. It also includes ensuring that their internal systems, software updates, and infrastructure are robust enough to withstand unexpected failures.

Rigorous Testing and Validation are Crucial

One of the most important lessons from system outages is the need for rigorous testing and validation of all software and updates, especially those that impact mission-critical systems. To reduce the risk of downtime, it is essential to test updates in non-production environments and implement a phased roll-out strategy. This approach allows organizations to detect issues early without putting essential operations at risk.

However, testing and validation should not be limited to in-house environments. Financial firms should also collaborate with third-party providers to ensure that their vendors adhere to the same level of scrutiny and testing before deploying updates. By stress-testing software under real-world conditions, organizations can avoid costly downtime and ensure that systems remain operational.

Moreover, by implementing a single, integrated cybersecurity platform, organizations can ensure cohesive protection across endpoint security, network monitoring, and incident response. Putting such a solution in place helps mitigate risks by providing seamless coverage, reducing the chance that a single point of failure could disrupt critical operations.

Financial firms should also look to integrate their cybersecurity and IT management processes, aligning both to ensure seamless operations. This holistic approach provides deeper visibility into system health and helps organizations mitigate risks through enhanced coordination between cybersecurity and IT infrastructure.

While it’s impossible to eliminate every risk, strong contingency planning can minimise the impact of unexpected outages. For financial services firms, this means having robust business continuity and disaster recovery (BC/DR) plans. These plans should ensure that core operations can continue, even in the event of a significant cyber disruption.

One common oversight when it comes to BC/DR planning is the lack of regular testing. Firms should routinely test their plans, incorporating drills and scenarios that mirror real-world conditions. This not only helps identify weak points but also ensures that response teams are prepared to act quickly during an incident. The key to limiting downtime is a well-executed response strategy that includes clear communication and recovery protocols.

The Role of Continuous Monitoring

Proactive and continuous monitoring is essential for spotting vulnerabilities early because it allows organizations to detect anomalies, such as unusual traffic spikes or performance issues, that could indicate a looming failure or security breach. By leveraging real-time monitoring tools and maintaining visibility across the IT ecosystem, financial institutions can address issues before they escalate into larger disruptions.

Advanced technologies like artificial intelligence (AI) and machine learning (ML) also have a role to play in enhancing monitoring capabilities, helping to detect patterns that may signal a system failure or cyber-attack and enabling faster response times and reducing the overall impact of an incident.

Building Long-Term Resilience

Each time an outage occurs, whether global and widespread or limited to one business, it serves as a critical reminder that cybersecurity and operational resilience are intertwined. Financial institutions must take a comprehensive approach that integrates cybersecurity within their IT infrastructure and ensures that both systems are continuously monitored and stress-tested. By adopting rigorous testing processes, diversified protection strategies, strong contingency planning, and continuous monitoring, organizations can better protect themselves from both internal failures and external threats.

While no system is immune to disruption, adopting a proactive approach will significantly increase resilience and reduce the impact of future incidents on critical financial operations.

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