Cyber security is the protection of computer systems from theft or damage to their hardware, software or data, as well as disruption or misdirection of the services they provide. The cyber threat is growing as our reliance on connected technology increases and access to data proliferates across smart devices. Key risks include operational and financial failings if systems are disrupted, and for any company dealing with customer data, both reputational and regulatory risks abound.
We regularly speak to relevant companies about their cyber security arrangements as part of our wider interactions, and in 2019 discussed this topic with companies as diverse as, for example, telecoms provider Vodafone, banking group RBS, media company Future and banking group Lloyds.
Objective:
To understand the cyber risks being faced by banking group Lloyds and the governance in place to mitigate these risks.
Action:
We met the chief security officer and cyber security director to talk through its cyber strategy.
Outcome:
M&G was assured by the competency of Lloyds’ capabilities in relation to cyber security and we will continue to monitor its performance and progress in this area.
Further information:
M&G engaged with Lloyds specifically on cyber, as this is an ever-growing risk for banks. The chief security officer and cyber security director gave a comprehensive overview of the bank’s cyber security strategy, including insight into its real-time monitoring for incidents, regular vulnerability testing and patching exercises. We were assured by the level of engagement with the board around cyber issues – including simulation exercises for cyber-attacks and regular discussion around the threats and internal capabilities in this area. We felt reassured by the extent of expertise and risk mitigation that Lloyds has in this area.
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