AI: Experts advocate cybersecurity literacy, risk management in capital market
By Rukayat Moisemhe
Some experts have emphasised the need for cybersecurity literacy to enhance strategic risk management in the capital market.
This, they said, would enable the Nigerian capital market to harness the advantages of Artificial Intelligence (AI).
They gave the advice at the 2024 Company Secretaries and Registrars’ Forum organised by the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) on Thursday in Lagos.
The News Agency of Nigeria (NAN) reports that the theme of the event was: “The Implications of Artificial Intelligence and Cybersecurity on capital market Operations.”
Mr Simon Aranonu, the Executive Director, Large Enterprises Directorate, Bank of Industry (BoI), said the advancements in AI technology had permeated every facet of the capital market industry, revolutionising processes and boosting efficiency.
Aranonu noted that corporate governance presented an opportunity for board members and top management teams to continually refine their communication skills, bring cyber-literacy to the boardroom, and enhance their organisations cyber resilience.
He stated that while capital markets around the globe were the most data-sensitive segment of the financial industry, AI was reshaping how traders, investors, and financial institutions perceive, analyse, and interact with the markets.
According to him, in recent years, capital markets have witnessed a surge in diverse investment opportunities, with massive support from private sector institutions in collaboration with the Federal Government.
Aranonu stated that the integration of new and innovative had resulted in increased economic activities, while making the markets susceptible to cyber attacks.
“Currently, Nigeria’s capital market is expected to reposition the economy along a path of sustained growth by broadening asset classes, improving liquidity, and deepening transactions.
“The more investments that come into the capital market, the better the economic growth and development outlook.
“Accordingly, proactive measures must be put in place to safeguard the volume of transactions in the capital market,” Aranonu said.
He listed impacts of AI and cybersecurity practices in capital markets to include: algorithmic trading, fraud detection, risk management and compliance automation, portfolio management among others.
Aranonu stressed that there were preventive strategies for individuals, firms and the general society to prevent and mitigate the impact of cybercrime.
“As we look forward to a cyber-secure future, driven by technology and innovation, there will be opportunities as well as challenges in our day-to-day operations.
“However, we are presented regularly with more tools to combat the threats as they arise.
“Leveraging advanced technologies, fostering global collaboration, and prioritising cybersecurity education and awareness can mitigate risks and ensure a secure digital future.
“What is very clear is that it is increasingly important to stay ahead in the ever-evolving world of AI and cybersecurity,” he said.
Mrs Funmi Ekundayo, President, ICSAN, said the forum serve as an avenue to expose participants to modern day practical solutions to problems on company secretarial practices, registrars’ functions and related issues.
Ekundayo said the event’s theme underscored the institute’s predisposition with engagement of current issues that expand the frontiers of knowledge through strategic brainstorming and intellectual endeavors.
She noted that it was chosen because of its relevance not only to current corporate secretarial practices, but governance practices, especially with the right focus set on capital market operations.
“The depth, scope and utilitarian values of AI to our modern life is so engrossing and multidimensional that it will be an understatement to say we have entered the Age of Artificial Intelligence.
“According to a study by Statista, the global AI market is set to grow up to 54 per cent every single year, the magnitude of that projected growth and the concomitant impact in our everyday life can best be imagined.
“As a result, some pessimists have even cautioned that its wide applicability in all fields should be strictly monitored in order to forestall the possibility of this phenomenon surpassing human intelligence, and taking over the world from mankind.
“As remote as that postulation may be, it only goes to underscore the truism of limitless possibilities that Artificial Intelligence offers,” she said.
Ekundayo noted that while everything in life has both advantages and disadvantages, it had become important to fashion out ways to harness the benefits it offered while whittling down any harm it may bring. (NAN)(www.nannews.ng)
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Edited by Chinyere Joel-Nwokeoma
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