to our benefit. as financial institutions grow bigger and have greater international presence, the nature and extent of cyber risks will continue to expand. events like this summit help propel the cyber security agenda forward. it is my hope that the sharing of knowledge and experiences here will generate new ideas to stem threats to cyber security. with that, i wish you all a productive and fruitful experience for the next two days. thank you. bis central bankers ’ speeches

muhammad bin ibrahim : demystifying cyber risks – evolving regulatory expectations keynote address by mr muhammad bin ibrahim, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the seacen cyber security summit 2014 “ demystifying cyber risks : evolving regulatory expectations ”, kuala lumpur, 25 august 2014. * * * it is my pleasure to welcome you to sasana kijang for the seacen cyber security summit 2014. the theme “ demystifying cyber risks : evolving regulatory expectations ” is apt given that the subject is not well understood by most and developments in this area tend to change at an exponential rate. i would therefore like to commend the seacen centre for taking an important step to strengthen awareness and promote collaboration among supervisors on cyber security issues. cyber security risk gives rise to new challenges cyber security risks are inherently complex. these threats are real and can have severe implications on financial institutions should the threat not properly managed. in 2013, more than 100 million customers had their credit card and personal information stolen as a result of a data breach at a major retail outlet in the us. the estimated cost of this incidence was close to $ 150 million. for a single cyber attack, this is a staggering amount. increased cyber security risk is a direct consequence of the more digital world we live in, where computing devices, online networks and technology infrastructure are becoming more integral to our daily lives. modern financial systems also operate and depend heavily on these same networks and infrastructure. we can expect the management of cyber security risk to be even more relevant and challenging in the financial sector. financial institutions operate critical payment and settlement systems and maintain sensitive customer information. this makes the financial system an attractive target for cyber security attacks. the adoption of more sophisticated and digital technology for key systems such as trading platforms, data warehouses and internet banking introduces new sources of cyber security issues which could be more systemic. for example, a distributed denial of service ( ddos ) attack on banks in the united states in 2013 caused serious disruptions in access to online services. while causing no major losses, the increasing sophistication of the cyber attack raises concerns over critical functions of the financial system. this offers a glimpse of the potential harm confronting us in the years ahead. no doubt, technological advancements are a force for good. they are crucial to the efficient operations of the financial system, such as through greater automation of processes, better risk management and the wider offering of products served through online platforms. this in turn