Cybersecurity and the outsourcing of IT services are identified as major risks to the financial sector in a recent report from German regulator BaFin.
The report outlines seven key risks that could threaten Germany’s financial stability, with one new addition for 2024: market concentration in IT service outsourcing. It points out that a small number of specialized IT providers cater to a large portion of banks and insurers, raising concerns about dependency.
Additionally, the report highlights the risks posed by cyberattacks and inadequate measures to prevent money laundering. Mark Branson, president of BaFin, emphasizes the importance of risk management, urging institutions to recognize their provisioning needs and invest in enhancing their operational security and stability.
For further details, you can read the full report here (in German).