meta_id 3310056

On January 2026, HM Treasury published "The Value of Resilience: Cyber Resilience in Financial Services," a comprehensive report examining the economic and financial value of operational resilience in the UK financial sector. Developed with analytical support from Accenture, KPMG Cyber Risk Insights (CRI), FreedomPay, Retail Economics, Resilience, and the Association of British Insurers (ABI), the report consolidates new and existing evidence on how cyber resilience affects financial performance and long-term growth. The report identifies escalating cyber threats as a material challenge. The Bank of England's 2026 H1 Systemic Risk Survey found that 82 percent of UK banks, insurers and asset managers cited cyber attacks as a top-five risk to the financial system, up ten percentage points from 2024. In 2024–25, highly significant incidents reported increased by 50 percent year-on-year, with nearly half of all incidents meeting the National Cyber Security Centre (NCSC) threshold for national significance. Loss modelling by KPMG CRI indicates that for mid-sized financial firms, plausible worst-case ransomware losses exceed £230 million, and for large firms approach £466 million. The report demonstrates that resilience extends beyond compliance and cost reduction. Organisations with stronger resilience capabilities outperform peers on revenue growth, profitability and customer trust. Highly resilient companies grow revenues 6 percentage points faster than peers and maintain profit margins 8 percentage points higher than median industry companies over a three-year horizon. Among firms in the highest resilience quartile, 60 percent record profit gains following severe shocks, compared with 21 percent among the least resilient. The report emphasises that resilience functions as a foundational enabler of growth and innovation, enabling firms to modernise systems and adopt new technologies without disruption undermining delivery. HM Treasury positions cyber resilience as a strategic organisational capability rather than solely a technical or compliance function, supporting both risk mitigation and sustained business performance in an increasingly digital financial environment.