A $1.3 trillion software development and deployment system has the potential to destabilize the entire global economy and threaten the survival of the planet, the head of the World Bank has warned.
The Global Development Association has issued a report on how the financial system is poised to become more and more vulnerable to cyber attacks and financial shocks.
Developers have already been warned that a number of major IT systems are vulnerable to attacks and could be at risk, including those in the banking system, financial systems, the health care sector and other large-scale industries, said David Sperling, president and CEO of the association, in an interview with Reuters.
In the event of an attack, the system would be unable to perform functions and would be rendered completely useless, Sperlin said.
Sperling was speaking at the Global Development Summit, a gathering of world leaders from the World Economic Forum and other international organizations.
For the first time, the association has warned of the potential dangers of such systems and the ways they could be used to harm the global economy.
“We’ve got to be very aware of the systems that we have at our disposal and also how vulnerable they are to attack,” he said.
“We need to be able to respond, and the response should be robust and responsive,” he added.
With the U.S. poised to enact a cybersecurity law and a number in Europe to regulate banks, it is becoming increasingly difficult for financial institutions to manage their risk and remain resilient in a crisis, said Sperlng.
Financial institutions need to develop a “strategy for resilience” to keep their business going, he said, and a “cyber-security culture” must be developed and implemented in their operations to protect their systems and to mitigate the risks of attack.
It is crucial for the U