The Cyber Recovery Paradox: How FinServ Organizations Excel Despite High Stakes

The financial services industry operates in a unique cybersecurity landscape – one where the stakes couldn’t be higher, yet the outcomes are surprisingly strong. A new Enterprise Strategy Group study commissioned by Commvault reveals a fascinating paradox: While FinServ organizations face more complex cyber recovery challenges than any other sector, they’re also achieving superior results when cyberattacks strike.

The High-Pressure Reality of Financial Services

Financial institutions handle massive volumes of money and sensitive data through increasingly complex IT infrastructures that change at breakneck speed. Under constant regulatory scrutiny, these organizations must maintain extreme diligence to comply with policies while operating with a higher bar than other industries.

The result? More advanced preparation requirements, more rigorous testing protocols, and more aggressive service-level agreements.

The numbers tell a striking story: FinServ organizations are 13% less confident in their skills, technology, and experience to recover from successful cyberattacks compared to other sectors. They consistently report that cyber recovery processes are more complex, time-consuming, and challenging to test than traditional disaster recovery.

The Surprising Success Story

Despite these elevated challenges, the research reveals that FinServ organizations actually outperform their peers when it comes to cyber recovery outcomes:

• 63% of FinServ organizations reported minimal or no disruption from data loss due to cyberattacks (compared to 53% in other sectors).
• 63% also experienced minimal downtime disruption (vs. 49% for other industries).
• 41% described their recent cyber recoveries as “turnkey and smooth” (compared to just 23% across all other industries).
• FinServ organizations are more than twice as likely to have cyber recovery plans protecting all apps and data needed to remain operational (36% vs. 17%).

The Secret to Success: Five Key Strategies

How do financial services organizations achieve these superior outcomes despite facing greater complexity? The research identified five critical strategies that separate leaders from laggards:

1. Set aspirational SLAs.
   FinServ organizations don’t just aim high – they aim for near-perfection. Fifty-five percent target recovery point objectives of seconds or minutes (vs. 33% in other sectors), while 45% maintain recovery time objectives of less than one day (compared to 26% elsewhere).
   
2. Test attack readiness frequently.
   While 75% of FinServ organizations conduct quarterly or more frequent cyber recovery tests, only 66% of other industries maintain this cadence. This rigorous testing culture helps identify gaps before they become crisis points.
   
3. Empower the CISO to set the strategy.
   FinServ CISOs take more ownership of cyber recovery planning than their counterparts in other industries, particularly in risk assessments (29% vs. 17%), investment decisions (34% vs. 21%), and test plan creation (24% vs. 14%).
   
4. Identify key areas of investment.
   FinServ organizations are significantly more likely to increase investments in parallel/high-availability systems (41% vs. 26%), recognizing that even minutes of downtime can be extremely expensive.
   
5. Leverage AI as a force multiplier.
   FinServ organizations are leading the charge in AI-/ML-powered security technologies, with 43% reporting extensive adoption compared to 29% across other industries.

The Broader Implications

This research offers valuable insights for organizations across all sectors. The FinServ industry’s approach – driven by regulatory requirements, customer trust imperatives, and the high cost of downtime – provides a blueprint for cyber resilience excellence.

The key takeaway? Success in cyber recovery isn’t just about having the right technology – it’s about creating a culture of operational discipline, investing in the right areas, and maintaining the vigilance to test and refine your approach continuously.

Ready to Dive Deeper?

The full Enterprise Strategy Group report contains detailed analysis, methodology, and actionable insights that can help your organization build more effective cyber recovery capabilities.

Organizations that learn from the financial services playbook—combining ambitious goals with rigorous testing, strategic leadership, and smart investments—will be best positioned to not just survive cyberattacks, but to recover stronger than before.

Download the complete report, Challenges in Meeting a High Bar for Cyber Recovery in Financial Services, to explore the full research findings and discover how your organization can apply these lessons to strengthen its cyber recovery capabilities.