Cybersecurity Penalty: Insights for Financial Services

This action by ASIC has reinforced that cyber security is now a governance obligation for financial services organisations—not just an IT issue.

Implications for financial services businesses

1) Direct regulatory exposure
Cyber control failures can be treated as failures of organisational governance and risk management—potentially impacting licence obligations and triggering enforceable remediation.

2) Multi-layered cost of failure
Beyond incident response costs, firms face legal, remediation, independent assurance requirements, operational disruption, higher insurance scrutiny, and reputational damage.

3) Evidence matters as much as intent
Being “generally security conscious” is not enough. Organisations must be able to prove:

• who owns each control,
• how it is measured,
• how exceptions are approved, and
• how issues are remediated and verified.

4) Dwell time and response readiness are under the microscope
Delayed detection and untested response plans increase both impact and regulatory risk.

5) “We’re small” is not a defence
Expectations scale to size, but also to the sensitivity of the data and services delivered. Smaller firms must still maintain fit-for-purpose controls and governance.

Where to Start

Nettko offers a short, low-disruption “Rapid Cyber Discovery” that gives you:

• A prioritised remediation plan your leadership team can approve (risk, effort, sequencing)
• Board-ready reporting pack (key risks, control gaps, recommended decisions and KPIs)
• Immediate “quick wins” to reduce exposure while longer-term uplift is planned