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Cyberattacks are becoming a more consequential credit risk for financial firms, as the damage can extend beyond data theft to operational disruptions and higher funding costs.
Summary
Korea Ratings is considering more objective ways to measure firms’ exposure to cyber threats, industry officials said Sunday. In a recent report, the ratings agency said cyber risk can weaken both a financial institution’s business prospects and its financial health. International rating agencies have already downgraded companies after cyberattacks disrupted operations or exposed weaknesses in internal controls.
In 2019, S&P Global Ratings cut Bank of Valletta’s rating to BBB- from BBB following a cyberattack, citing operational risks and governance weaknesses that hurt its creditworthiness. Korea Ratings has also recently incorporated cyber-related concerns into its assessment of a domestic financial firm. In March, it lowered Lotte Card’s score for the “risk management” factor in its regular credit assessment.
KazaSec's take
Incidents like this rarely start with the headline event itself, they usually trace back to an exposed remote-access endpoint, an unpatched perimeter system, or a credential phished weeks earlier. The organizations that recover fastest are the ones that tested their defenses and their incident response plan before they needed them.
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