The Importance of Information Security for Financial Institutions and Proposed Countermeasures --With a Focus on Internet-Based Financial Services--

In recent years, the development of information technology (IT) has brought with it a rapid increase in the use of open network systems, as typified by the Internet, to provide financial services. Concurrently, proper management of information security risks such as the risk of service interruptions, theft or alteration of data, impersonation and other events resulting from unauthorized access to the computer system is rapidly becoming critical. If these risks should occur and cause unauthorized remittances and service interruptions, not only could the business of individual financial institutions be adversely affected, but the entire settlement system could also be impacted. In order to ensure sound development of the financial services sector, while reaping the benefits from the remarkable advance of the IT revolution, it is vital for each financial institution to become thoroughly cognizant of the importance of information security, and to work for managing risk systematically throughout the organization in line with each situation, under the active involvement of management. In this recognition, we have put together a list of points in this paper about the importance of information security and measures thereof in an effort to assist financial institutions in implementing appropriate information security countermeasures and safeguards.