PanNigerianNews 
Experts have posited that cybersecurity literacy would enhance strategic risk management in the capital market, adding it would enable the Nigerian capital market harness the advantages of Artificial Intelligence (AI).
They stated this during the 2024 Company Secretaries and Registrars’ Forum organised by the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) in Lagos.
At the event theme: “The Implications of Artificial Intelligence and Cybersecurity on Capital Market Operations”, 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.
