Banks need 'bare metal' recovery in face of AI risks, says BoE's Breeden
XLF•Bank of England Deputy Governor Sarah Breeden said banks need independent recovery systems for core services as AI-enabled cyber attacks raise systemic risks to financial infrastructure.
1. Recovery planning
Sarah Breeden said the Bank of England was working with banks on deep cyber-recovery options, warning that lenders can no longer assume their defences will keep attackers out. She said banks need to consider “bare metal” recovery options for core services across the financial system.
2. AI cyber risks
Bare metal systems operate independently of a bank’s main technology setup and can be activated if primary systems are compromised. Breeden said AI had increased the risks of larger and more complex cyber attacks, and urged banks to maintain basic cyber hygiene. UK supervisors have encouraged the largest banks to examine bare metal recovery plans.
