Developing cyber security framework for West Africa’s capital market

The stability and growth of capital markets in West Africa are facing increasing threats from cyber security risks. From market manipulation to data breaches, the CEO of Central Securities Clearing System, Haruna Jalo-Waziri, emphasizes the need for collaboration to drive a more resilient financial ecosystem. In a recent interview on CNBC Africa, Jalo-Waziri discussed the importance of Cyber Security Awareness Month and its significance for West African capital markets. Jalo-Waziri highlighted the pervasive nature of automation and connectivity in today's business environment, stressing the accompanying risk of cyber security threats. With the increasing reliance on technology for everyday tasks, the trust in the safety and security of online transactions becomes paramount. Cyber criminals exploit this connectivity to perpetrate attacks that directly impact financial institutions and investors. As a Central Securities Depository (CSD), the trust element of capital markets rests on the shoulders of entities like the Central Securities Clearing System. Post-trade processes, such as clearing, settlement, and back-end operations, must be secure to maintain market integrity. Jalo-Waziri emphasized the interconnected nature of the capital market ecosystem, involving members, exchanges, custodians, registrars, and investors, necessitating a collective effort to prioritize cyber security. In collaboration with the Office of the National Security Advisor, Jalo-Waziri's organization is spearheading awareness campaigns to elevate the importance of cyber security within the capital market ecosystem. By partnering with regulatory bodies and industry stakeholders, they aim to foster a culture of vigilance and proactive risk mitigation strategies. The CEO highlighted the criticality of assessing the cyber security readiness of partner institutions and service providers. While implementing standards and protocols for connectivity, organizations must acknowledge that they are only as strong as their weakest link. Continuous evaluation, awareness, and capacity building are essential to fortifying the resilience of the financial ecosystem against cyber threats. Discussing the scale of cyber attacks in capital markets, Jalo-Waziri revealed insights from his interactions with industry experts. The prevalence of cyber criminals collaborating globally contrasts with the lack of cohesive action within the financial sector. He stressed the need for transparent information sharing and collaboration to enhance cyber security defenses. Despite the challenges posed by stigma and trust issues surrounding cyber breaches, Jalo-Waziri advocated for a more open discourse on cyber security incidents. Transparency and accountability, supported by legislative frameworks, can promote a culture of knowledge sharing and mutual protection among financial institutions. In conclusion, the call for collaboration echoes throughout Jalo-Waziri's insights on cyber security in West Africa's capital markets. By fostering a collective approach to cyber risk management, industry players can better shield themselves against evolving threats and sustain the stability of the financial ecosystem.