Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to strengthen the resilience of the financial system against cyber risks arising from the use of advanced artificial intelligence tools, in light of warnings from the International Monetary Fund that such risks could pose systemic threats.

Cyber security is a top priority for the Government, and HM Treasury works with the financial authorities, industry and with international partners to strengthen the financial sector’s resilience to threats and hazards of all origins, including cyber risks.

HM Treasury is actively engaging industry, including through the Cross Market Operational Resilience Group, and published a joint statement on frontier AI and cyber resilience alongside the Bank of England and Financial Conduct Authority on 15 May. This has been supported by technical advice from the National Cyber Security Centre, which has published guidance to organisations on building cyber resilience, and the UK’s AI Security Institute, which tests leading AI systems and collaborates with top AI companies to improve their safety and security.

UK financial regulators have also implemented an operational resilience framework for the financial sector, which includes rules and supervisory expectations on operational resilience and risk management for financial services firms. We also maintain robust exercising and incident response frameworks, ensuring readiness for disruption and coordination across government and industry.