Financial organisations face unprecedented cybersecurity challenges that threaten their operations, reputation and customer trust. Together, Palo Alto Networks and IBM’s experts share their top cybersecurity considerations in a new, compelling vodcast series.
Consideration 1: Navigating the Fiscal Implications of Cyberthreats and Operational Complexity
Our first episode explores the most pressing threats to UK financial institutions, including insider risks, AI-driven attacks and the challenges posed by legacy systems.
Year on year, the cost of cybersecurity attacks is soaring. Today, the average cost of a data breach for a financial institution is over £6.2bn. Additionally, banking executives cite complexity as the biggest impediment to their cybersecurity operations. The average cost of security complexity is a whopping 6% of annual revenue, according to the latest IBM research, resulting from security incidence, inefficiencies, loss of customer trust and reputational damage.
Rachel Lum, Partner at IBM Consulting Financial Services says:
Prevention is no longer optional — it’s essential.
While the complexity of cybersecurity operations has grown, so has the complexity of cyberattacks. Shlomi Kramer, Worldwide Sales Lead for the Palo Alto Networks Partnership at IBM, says:
AI has changed the game for attackers, enabling personalized phishing campaigns, deepfakes and automated exploits.
Scott McKinnon, chief security officer at Palo Alto Networks UK&I, shares:
Financial institutions need better monitoring and awareness campaigns to counter insider threats, whether malicious or inadvertent. It’s about building a culture of resilience.
Financial organisations do not have to let cybersecurity complexity erode their profits. Discover our latest insights in our vodcast, as well as in IBM’s report.
Consideration 2: Continuous Compliance Drives Transformation
In the second episode, our experts discuss the impact of regulations like DORA, PRA OpRes, and PCI DSS v4 on financial services cybersecurity.
Not only do financial institutions need to secure their own environment, but also their entire ecosystem, including third parties’. To manage the complexity of compliance, McKinnon advocates for a proactive approach:
The days of annual audits are over. Continuous compliance is the new standard, powered by automation. Organizations need to demonstrate resilience in real time, especially across supply chains.
As regulatory updates lead to increased scrutiny, many companies find themselves scrambling to get their environments compliant. Only 51% of organizations believe their current security operating model is effective, according to IBM’s latest research.
But, Kramer offers a practical take on the approach they need to take:
The key now is translating technical risks into business metrics. Assigning financial values to risks helps prioritize investments and justify budgets.
Along with this strategy, it’s critical for financial institutions to rethink the value of continuous reporting and compliance. Rachel Lum says:
Compliance unlocks everything else. Miss the mark, and your transformation programs stall. But when done right, it’s a foundation for growth and innovation.
Consideration 3: Best Practices for UK Financial Institutions to Improve Cyber Incident Response and Recovery
Our third episode covers actionable insights on enhancing response and recovery strategies for cyber incidents, including the value of frameworks, like NIST (National Institute of Standards and Technology).
However, frameworks alone are not enough. McKinnon states:
Preparation is key, but simulation is what builds muscle memory. At IBM, we use the cyber range to immerse C-suites and boards in realistic attack scenarios. It’s about more than dusting off old protocols – it’s ensuring they’re relevant and actionable. Too many organizations get caught off guard by outdated plans.
Lum adds that organisations need to focus on people and collective learning:
Cyber response isn’t just about the board and IT; it’s everyone. Repetition and practice embed response strategies into the organization. Equally important is learning from every incident. And don’t just learn from your own experiences – look outward to gain collective insights.
Research from IBM and Palo Alto Networks suggests that organizations should consider adopting a platformization model for their security. Four out of five nonplatform users said that their security operators cannot deal effectively with the sheer quantity of threats and attacks. Only one in five platform users think the same, suggesting this is key to readiness and fast response.
Consideration 4: Preparing for Quantum Computing
How are financial services leveraging AI to address cybersecurity challenges and preparing to be quantum-safe? In Episode 4, we explore how emerging technologies like AI and quantum computing are reshaping cybersecurity, enabling financial institutions to enhance defenses, manage risks and prepare for future challenges.
The future of cybersecurity threats calls for readiness in these cutting-edge areas, with the expert panel highlighting how financial institutions are prioritizing post-quantum security. This preparation aligns with a broader strategy for future-proofing cybersecurity systems. The episode explores IBM’s three-stage quantum readiness framework, which focuses on preparation, transformation and migration to help companies mitigate risks while taking advantage of quantum-era opportunities.
According to our research, a platformization approach to security is key to adopting AI and other innovations effectively. We found that 75% of respondents who have embraced security platformization benefited from better integration across security, hybrid cloud, AI and other technology platforms. What’s more, eight out of 10 executives agreed that adopting security platforms will improve AI operations across the enterprise.
Financial institutions need to balance innovation with their inherent low-risk tolerance. Partnerships, like Palo Alto Networks and IBM, help financial institutions adopt AI and prepare for quantum computing securely, enabling them to navigate this complex landscape while maintaining trust and stability.
Consideration 5: Addressing Workforce Challenges in Cybersecurity
The evolving cybersecurity landscape demands more than just advanced technology. In Episode 5 we look at how financial services institutions must empower their workforce to stay ahead of threats. Educating the entire workforce (not just cybersecurity teams) should be a key focus for financial institutions.
This pain point is well recognized by businesses with the latest research from IBM and Palo Alto Networks, which shows that 74% of executives agree the current workload on their security operators is excessive. This drives up the risks of manual error or oversight. It’s also why the panel believes diversity in the workforce is equally important for enhancing innovation and adaptability within cybersecurity teams.
The episode explores how broadening recruitment efforts and education pipelines can alleviate talent shortages. McKinnon says:
The cybersecurity industry must expand its hiring practices to include talent from unconventional pathways. This requires taking risks and accepting that current education pipelines are underdeveloped.
One way to alleviate these resource constraints is for financial institutions to consider partnerships, such as Palo Alto Networks and IBM, to deliver tailored security services to scale operations. Additionally, government programs are playing a vital role in addressing the cybersecurity talent gap, such as the CyberFirst initiative and the Cyber Security Skills Council that help professionalize the cybersecurity industry.
Beyond workforce development, technology like AI offers an innovative way to address the increasing complexity of cybersecurity operations. McKinnon says:
In areas like security operations, AI breaks the link between growth in data and the need for proportional workforce expansion. This makes operations more efficient without increasing staffing demands.
Consideration 6: Strategic Partnerships Drive Success
The final episode of this series explores how IBM and Palo Alto Networks redefine organizational security, leveraging innovation and collaboration for an unbeatable cybersecurity posture.
Turner delves into the joint strategy of platformization, which “brings together a comprehensive set of security services on a natively integrated platform. This isn’t just about keeping up – it’s about staying ahead with real-time, autonomous outcomes.” In fact, platformized organizations take an average 72 days less to detect a security incident and 84 days less to contain one.
But the value goes beyond detection and response. Our research shows that 96% of security executives who have adopted platformization say security is a source of value, compared to just 8% of those who haven’t. And, among platform users, only 10% of digital transformation initiatives fail to scale due to security concerns, compared to 26% that fail among nonplatform users.
This highlights the value of end-to-end protection. As Bates says:
With our full lifecycle approach, from strategy and risk management to threat monitoring, we wrap Palo Alto Networks’ cutting-edge technology with unmatched services to give clients true resilience.
The value lies in real-world collaboration and how this partnership is already delivering results. Palo Alto Networks and IBM do this by integrating cutting-edge technologies that automate threat detection, ensuring faster and more accurate responses. The robust cloud security framework offers seamless protection across multicloud environments, while their compliance solutions are designed to simplify adaptation to changing regulations, keeping your business secure and agile.
This series has highlighted how the integration of platformized security services by Palo Alto Networks and with IBM’s comprehensive cybersecurity expertise offers financial services businesses real-time, autonomous outcomes and robust risk management.
Together, we can help you scale your cybersecurity efforts, enhance threat detection and improve resilience in an ever-evolving threat landscape.
To understand more about how the strategic partnership between Palo Alto Networks and IBM can support your FSI organisation read the latest report here Capturing the Cybersecurity Dividend in Banking. Or feel free to reach out to explore how we can craft solutions tailored for your organization.
Link to Full Series
The vodcast is available on your favourite streaming services: