14 DAY TRIAL // The Securities Industry and Financial Markets Association (SIFMA) has published the results of the Quantum Dawn 2 cybersecurity exercise in which over 500 individuals from more than 50 financial organizations took part.
Multiple attacks were simulated on October 18. The “attackers” attempted to steal money, disrupt operational capabilities, and disrupt the equities markets.
Participants tested crisis response plans and mitigation strategies, and incident response communications.
The objectives also included the development and understanding of operational readiness in the event of a cyberattack, simulating the loss of critical infrastructure, and exercising the market open and close decision process in case of an attack.
“Cybersecurity is a top priority for the financial industry. Quantum Dawn 2 demonstrated the industry’s resiliency when faced with serious cyber attacks that aimed to steal money, crash systems and disrupt equity market trading. Most importantly, the exercise helped participants indentify areas where we can improve. Complacency is not an option in the fight against cyber crime,” noted former Senator Judd Gregg, SIFMA’s CEO.
“Quantum Dawn 2 proved that information sharing between the private sector and the government is one of the most effective ways to combat cyber crime. We hope this exercise will encourage Congress to pass legislation that promotes this sharing and other activities that will help our country more effectively mitigate cyber threats on the financial system.”
While the exercise was completed successfully, several areas that can be improved have been identified.
For instance, the financial sector should work on improving integration between government agencies, market participants and industry groups. Furthermore, existing guidelines and frameworks should be reviewed to allow organizations to determine if an attack is systemic in nature and if it has the potential to impact the broader financial system.
Communication and information sharing should also be improved. This refers not only to communication and information sharing between market participants, but also with the public.
Communicating and sharing information with the public during a cyberattack increases trust and confidence in the markets.