Financial services secretary M Nagaraju on Thursday highlighted the risks posed by Anthropic's Mythos AI model and urged the banking community to be prepared in case Mythos is released publicly in the country.
Banking risks are no longer confined to trade books or balance sheets; they now arise from geopolitical developments, technology, cyber threats and operational disruptions among others, Nagaraju said. He specifically mentioned Mythos AI, alluding to its advanced capability to identify and potentially exploit these systems.
"One successful cyberattack can cascade quickly across institutions and markets," Nagaraju said, addressing bankers at a Risk Management Summit organised by the Indian Banks' Association (IBA) here. "Banks and financial institutions are most vulnerable as there is high interconnection and dependence on legacy IT systems and operating in real time. In today's environment, operational continuity is central to financial stability," he said.
Banks must continuously test their resilience, strengthen incident response and invest in cyber capabilities to ensure business continuity, he said. As the financial sector becomes more interconnected, banks also need to look beyond institution-specific risk and pay greater attention to systemic and ecosystem-level risk as interdependencies mean that risk can travel quickly from any one of the channels, Nagaraju said.
Banking risks are no longer confined to trade books or balance sheets; they now arise from geopolitical developments, technology, cyber threats and operational disruptions among others, Nagaraju said. He specifically mentioned Mythos AI, alluding to its advanced capability to identify and potentially exploit these systems.
"One successful cyberattack can cascade quickly across institutions and markets," Nagaraju said, addressing bankers at a Risk Management Summit organised by the Indian Banks' Association (IBA) here. "Banks and financial institutions are most vulnerable as there is high interconnection and dependence on legacy IT systems and operating in real time. In today's environment, operational continuity is central to financial stability," he said.
Banks must continuously test their resilience, strengthen incident response and invest in cyber capabilities to ensure business continuity, he said. As the financial sector becomes more interconnected, banks also need to look beyond institution-specific risk and pay greater attention to systemic and ecosystem-level risk as interdependencies mean that risk can travel quickly from any one of the channels, Nagaraju said.
