IncollaborationwithFinancialConductAuthority

(FCA)Quantum

Security

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Sector:Informing

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4Images:GettyImagesContentsForeword34ExecutivesummaryIntroduction51

Currentlandscape72

Guidingprinciples83

Industry-regulatorjourneytoaquantum-secureeconomy1117181921ConclusionAppendixContributorsEndnotesDisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.The?ndings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.?2024WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches2January2024QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproachesForewordJessicaRusuJeremyJurgensManagingDirector,WorldEconomicForumChiefData,Information&IntelligenceOf?cer,FinancialConductAuthorityQuantumtechnologyhasthepotentialtotechnologicaladvancesbutshapethemforrevolutionize?nancialservices,improvingmaximumbene?twhilemitigatingrisks.InitiativessuchastheEmergingTechnology

ResearchHub,digitalandregulatorysandboxesandtheGlobalFinancialInnovationNetworkdemonstratetheFCA’sproactiveapproachtoinformedpolicy-making.computation,modellingandfrauddetection,butitalsoposessigni?cantcybersecurityrisks.To

fullybene?tfromthesector’s

transitiontothequantumeconomyera,itiskeytoaddressthesechallengesthatcouldunderminethedigitalsecurityandfoundationalelementsofthe?nancialsector.

Thesepotentialsystemicdisruptionsunderscoretheneedforauni?ed,globalandcross-industryapproachtoquantumsecurityforthe?nancialsector.TheWorldEconomicForum,incollaborationwiththeFCA,hasbeenattheforefrontoftheinternationaldialoguethathasledtothispaper,gleaninginsightsfromindustry,academia,?nancialauthorities,regulatorsandcentralbanks.Thisinitiativelaysthegroundworkandprovidesguidanceformorecollaborative,harmonizedandgloballyinformedquantumsecuritystrategies.Thisinitialdiscussionformsaninvitationforongoingcollaborationwithstakeholderstoensurethatthe?nancialsectorisadequatelyequippedtotacklethesecuritychallengesposedbythequantumtransition.Shapingthedevelopmentofthequantumeconomy,globally,hasbeenoneofthekeyprioritiesoftheWorld

EconomicForum’s

QuantumEconomyNetworksinceitsinception.Thenetworkhasbeenfosteringpublic-privatecooperationanddrivingactiononkeytopicssuchasquantumgovernanceandsecurity.BalancinginnovationwithconsumerprotectionisparamountfortheFinancialConductAuthority(FCA),asweseektonotonlykeeppacewithTogether,

wecanensureacybersecureandresilient?nancialfutureforall.QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches3ExecutivesummaryThispaperpresentsfourguidingprinciplesandaroadmaptoinformglobalregulatoryandindustryapproachesforaquantum-secure?nancialsector.Inaneramarkedbyrapiddigitalization,the?nancialsectorstandsonthebrinkofatransformationfromadigitaleconomytoaquantumeconomy.Quantumcomputingpromisestorevolutionizeoperationsacrossthe?nancialsector,

withthepotentialtodisruptportfoliomanagementandimproveriskmanagement.However,

italsocomeswithchallenges,asquantumcomputingcouldrendermostcurrentencryptionschemesobsolete,threateningconsumerprotectionsandtheintegrityofdigitalinfrastructuresandeconomies.Theseverityoftheserisks,combinedwithanuncertaintimelinetotransitiontonewsecuritymodels,requiresstakeholderstotakeproactivemeasures.sectortransitiontoaquantum-securefuture.Thiseffortbroughttogetherregulators,centralbanks,industryplayersandacademiaforcoordinatedroundtablesandcurateddiscussions.Thiscollaborativeapproachproducedfourguidingprinciplesalongwitharoadmaptoserveasablueprinttoreducecomplexityandalignstakeholders’activities.Theseprinciples,toreuseandrepurpose,establishnon-negotiables,avoidfragmentationandincreasetransparency,areoverarchingandshouldinformactionsthroughoutthetransitiontoaquantum-secureeconomy.Thetransitionitselfisajourney,andthispaperprovidesafour-phaseroadmap:prepare,clarify,guide,andtransitionandmonitor.

Thisroadmapwillhelpthe?nancialsectorestablishamorecollaborative,harmonizedandgloballyinformedapproach,ensuringthatthe?nancialsectoriswell-preparedforthesecuritychallengesthatthequantumtransitionposes.Thispaperestablishesthegroundworkforfuturediscussionsbetweenindustrystakeholdersandregulatoryauthoritiestowardsaquantum-secure?nancialsector.Addressingquantum-enabledcybersecurityrisksinthe?nancialsectorisacomplextask,giventhesector’s

legacyinfrastructure,thenatureofquantumtechnology,andtheinterconnectednessoftheindustry.Theglobalnatureofthe?nancialsectorandthecommonthreatposedbyquantumtechnologyrequireclosecollaborationbetweenindustryandregulators.Recognizingtheneedforacoordinatedapproach,theWorldEconomicForum,incollaborationwiththeFinancialConductAuthority(FCA),initiatedadialoguetohelpthe?nancialQuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches4IntroductionThecomplexitiesandimpactofquantumtechnologiesonthe?nancialsectorrequire

opendialoguebetweenregulatoryauthoritiesandindustry.The?nancialsectorisonthevergeofaquantumtechnologiesare

thenextfrontier.

Theytransformationasitbeginstoleverageemergingandfrontier

technologies.Whilethefocusremainsontechnologiessuchasarti?cialintelligence(AI),offer

disruptiveopportunitiestoenhancethesector’s

capabilities,butalsoposechallengesforitsoperations.The

quantumeconomyeraisfast

approaching

andweneed

a

globalpublic-private

approach

to

address

the

complexities

it

will

introduce.We

welcome

this

opportunity

to

collaboratewiththeFinancial

ConductAuthoritytochart

the

roadmap

for

a

seamlessandsecure

transition

forthe

?nancial

servicessector

tothequantumeconomy.Sebastian

Buckup,

HeadofNetwork

and

Partnerships;

Member

of

theExecutive

Committee,

World

EconomicForumEmergingquantumrisksandopportunitiesinthe?nancialsectorThissurgeininvestmentisunderpinnedbythesector’s

pursuitofadvancementsinMonteCarlosimulations,portfoliooptimizationandcomplexderivativecalculations,withthepotentialtoaddapproximately

$700billioninvalueby2035.3Quantum

computers

can

handle

and

solve

certaincomplexmathematicalproblems

signi?cantlyfasterthanclassicalcomputers.Thistechnologyhasthepotentialfordisruptionandprovides?nancialorganizationswiththeopportunityforcompetitiveadvantage.Investmentsbythe?nancialsectorcon?rma

growing

commitmenttoharnessing

quantuminnovation,witha

projectedrisefrom

$80millionin2022to$19billionbyWhilethesector’s

innovatorsfocusonharnessingtheseopportunities,itisequallyimportanttoprepareforpotentialquantum-enabledcybersecuritythreats.

Atthecore

ofthisquantumdilemmalies4thetechnology’s

potentialtorender

somecurrentencryptionschemesobsolete,threatening

thesecurityofdigitalinfrastructures,

communicationsanddata.

Sucha

scenariowouldnotonlyundermine52032,1andtoreach

upto$850billionoverthecybersecuritybutalsoerode

thefoundationoftrustandstabilityuponwhich?nancialservicesoperate.next30years.2QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches5Taking

aharmonizedapproachtoquantumsecurityThisrequiresactionfromdiversestakeholders,includingindustry,regulators,policy-makersandvendors.ArecentsurveyconductedbytheFCAhighlightedthisurgency,as60%oftherespondentsfromregulatoryauthoritiessaidtheyanticipatedquantumcomputingtosigni?cantlyimpactthe?nancialsectorwithinthenextsevenyears.GiventheexistenceofbothpresentandfuturethreatsandtheextensivetimerequiredtotransitiontoTheseverityofquantumcybersecurityrisksforthe?nancialsector,

coupledwiththelimitedtimeavailabletoprepare,

provide

themotivationtoactandtheopportunityforall?nancialsectorstakeholderstotakeappropriate,

proactive

measures.quantum-securesystems,

industryandregulators9Severalmajor?nancialinstitutionsexpectquantumcomputingtosigni?cantlydisruptthesectorinmustbegintakingproactivestepsnow.thenextdecadeandbeyond.6Furthermore,theThisalignswithrecentForumreportswhichhaveemphasizedthatglobalregulatoryapproachesarekeydriverstoimprovecybersecuritytowardsaquantum-securetransition,10

andareimportantguardrailstoenabletheresponsibledevelopmentofquantumtechnologies.11

Regulatoryauthoritieshavealsohighlightedtheimportanceofensuringglobalandharmonizedregulatoryapproaches,with93%ofthementionedsurveyrespondentsagreeingthatquantumtechnologieswillhavesigni?cantimplicationsfortheirregulatoryframeworks.12emergenceof“HarvestNow,

DecryptLater”attackvectorspresentsasigni?cantcurrentandlong-termrisktothe?nancialsector’s

datasecurity.Whilethetimelineisstilluncertain,leadingexpertsinthe?eldforecastthequantumthreattomaterializewithinthenextdecade.Governmentsareadvocatingforactionnowtoensurethattheindustryisreadyforthequantumthreatby2035,ashighlightedintheUnitedStates’(US)National7SecurityMemorandumofMay2022.8Quantum

computing

presents

considerableopportunities

but

alsothreats.

The

?nancialsectorrelies

heavily

on

encryption

toprotectsensitive

information,theexposure

of

whichcouldcausesigni?cantharmtoconsumers

andmarkets.Addressing

thisrequiresa

trulycollaborative

effort

totransitionto

a

quantum-secure

future.SumanZiaullah,

Head

of

Technology,

Resilienceand

Cyber,Financial

Conduct

AuthorityBringingtogetherindustryandTheWorldEconomicForum,incollaborationwiththeFCA,initiatedaninternational

dialogue,conveningregulators,centralbanks,industryplayersandacademia.Thiscollaborativeeffort,comprisingofcoordinated

roundtablesandcurateddiscussions,broughttogetherindustryandregulatoryleaderstogatherinsightsandnavigatethechallengesoftransitioningtoquantum-secure?nancialservices.regulatoryauthoritiesEnsuringglobalandinteroperableregulatoryapproachesisacomplextask,giventhediverselandscape,stateofdevelopment,andinvestmentandresourcesavailableineachjurisdiction.Ongoingcollaborationbetweenindustryandregulatoryauthoritiesisessentialtoestablishclarityandreducecomplexity.Suchcollaborationfostersalignmenttomitigatequantumcybersecurityrisks,capturebene?tsandinformregulatoryapproachestoensuresecurityandharnessthepotentialvalueofquantumtechnologies.Synthesizingtheinsightsfromthesediscussions,thisreport

providesguidingprinciplestoinformregulatoryandindustryactionwhilechartinga

roadmapofactionsfora

transitiontowardsa

quantum-secureeconomy.Thejourneytowardsa

quantum-secure?nancialsectoriscomplexandchallenging,yetthroughcollaborativeeffortsandproactiveengagement,itisa

journey

thatthe?nancialsectorshouldembarkuponwithurgencyandresolve.QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches6Current

landscape1Emergingmisalignmentintheregulatorylandscape,andchallengesintheindustry,are

limitingactionstoembarkonaquantum-securetransition.Bothpublicandprivatesectorsaretakinginitiativesinspeci?cregions,withtheUSsettinga

quantum-secure

transition

milestone

for

203513

and

its

NationalInstituteofStandardsandTechnology(NIST)leadinginternational

effortstoestablishstandardsandguidanceonpost-quantumcryptographysolutionsby2024.14

Whilegovernments,

regulatorsandindustryare

increasinglycognizantofthequantumthreat,a

tangibleactionplantoestablishglobalandharmonizedregulatory

approaches

remainselusive.15

Furthermore,thecomplexityofquantumtechnologiesposeschallengesinseveralotherareas,suchasskillsandknowledge,policyandguidance,long-termcybersecurityprioritymanagement,andthehighresource-intensityofmigratingandupgradingthecomplex?nancialinfrastructure.16Thenovelandcomplexnature

ofquantumtechnologiesrequires

furtherdevelopmentinknowledgeandcapabilitiesacross

regulators

tocreatetheneededunderstandingtomanagethisrisk.IndustryperspectiveIndustrystakeholdershighlightchallengesstemmingfromfragmentationandgeographicalvariationsinapplyingglobalstandards.Thelackofregulatoryclarityhindersvendors’preparednessandreducesinvestorcon?denceintheemergingvendormarket.The?nancialsectoralsofacestechnologicalchallengesinunderstandingandimplementingvariousquantumsolutions,includingpost-quantumcryptographyandquantumkeydistribution.RegulatoryperspectiveMoreover,

?nancialsectororganizationsoftenrelyonlarge,complexdigitalinfrastructurewithlegacyenvironments,aswellasthirdparties,forawiderangeofservices,exposingthemtosupplychainvulnerabilitiesandincreasingthecomplexityofintegratingquantum-securesolutions.Thecostandtimeneededforafulltransitiontoaquantum-secureenvironmentisvast,andleadersstruggletobalancebetweentheincreasedcyberriskinacomplexthreatlandscapeandthelong-termquantum-securityrisksthatareyettomaterialize.17Theregulatoryauthoritiesthathavetakenpartinthisdialoguehavedescribedthelandscapeasuncertain,withlimitedinternationalcoordination.Invariousjurisdictions,a

lackofregulatoryguidancehasledtouncertaintiesforindustryregardinghowtoprepareandmanagetheemergingquantumcyberrisks.Theseuncertaintiesarefurthercompoundedbydivergentgovernmental

approachesandearlymisalignmentacross

regulatoryjurisdictions.Differentregions

areatvariedstagesofpreparedness,andtheirapproachestoquantumsecuritydifferduetosize,investmentandpriorities.Discussionsthroughoutthisworkprogrammehavehighlightedregulationsasacatalystforprioritizingandadvancingthetransitiontoquantum-securesystems.Balancingshort-,medium-andlong-termimplicationsofquantumthreatsrequiresanapproachthatavoidsexcessiveregulationwhileprovidingclearguidance.Collaborationonaninternationalscalecanfacilitatethesharingofknowledge,bestpracticesandexpertiseinimplementingdifferentquantumsolutionstofosteracohesiveapproachacrossjurisdictions.Thislackofharmonizationposessigni?cantchallengesforglobalentitiesoperatinginmultiplejurisdictions,addinglayersofcomplexityandcomplianceburdens.Ontheotherhand,itprovidestheopportunitytoprioritizethisissueontheinternationalagendaandtosetinternationalguidelinesthatcanbetailoredtodifferentjurisdictionstoensureconsistencyinhowdifferentjurisdictionsdealwiththetransition.Thecurrent

conditionsinboththeindustryandregulatory

landscapeshighlighttheurgentneedforincreased

international

collaborationtoshare

knowledge,expertiseandexperience.Thiscollaborationshouldinvolveindustryplayers,regulators,

centralbanks,standardsorganizations,third-party

suppliersandotherstakeholderstoensure

a

seamlesstransitiontoaquantum-secure

economy.Furthermore,theinterconnectedandglobalnatureofthe?nancialsectormeansthatitssecurityoftendependsonitsmostvulnerablepoints.Assuch,increasedemphasisshouldbeplacedonsupportingemergingmarketsandsmallerorganizationsintheirtransition,ensuringthatthese?nancialhubsarealsoadequatelypreparedtodealwiththequantum-enabledrisks.QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches7Jointregulator-industryperspectiveTheintricaciesofquantumtechnologyandthecomplexityofthe?nancialsectorpresentchallengesforregulatorsandindustrystakeholders.Despitetheirdistinctperspectives,manychallengesaresharedandrequireglobalcollaborationtoinformearlyandfutureregulatoryapproaches.Industry

and

regulators

mustworktogether

tonavigatetheunchartedterritories

of

quantumcomputing

andquantum-resistantcybersecurity.

This

pivotalperioddemandsa

shared

understandingof

the

challengesand

opportunitiesahead.PhilipIntallura,

GlobalHead,QuantumTechnologies,

HSBC,United

KingdomFIGURE1

AlignedchallengesfromregulatorandindustryperspectivesLackofquantumawareness,knowledgeandcapabilitiesNeedtounderstandregulatorygapsClarityinguidanceonpreparingandmanagingthetransitionLimitedcollaborationonknowledgeandexperiencesharingNeedforglobalregulatoryclarityGuidancerequiredonsolutionsandstandardstofollowSource:WorldEconomicForumandFinancialConductAuthority.QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches8Guidingprinciples2Thissectionpresentsfourprinciplestoguideandinformglobalregulatoryapproachesforaquantum-securetransition.To

informregulatoryandindustryapproaches,thisreportidenti?esfourguidingprinciplestocreatetheconditionsforcollaboration.Theseprinciplesprovideinitialguidancefororganizationsandregulators,byservingasafoundationtoinformglobalregulatoryandindustryapproachestowardsaquantum-secure?nancialsector.FIGURE2

FourprinciplesforglobalregulationReuseandrepurposeEstablishnon-negotiablesIncreasetransparencyAvoidfragmentationDon'treinventthewheel,rathermakebestuseofexistingregulatoryframeworksandindustrypracticestoaddressquantum-enabledcybersecurityrisksEnsureastandardizedIndustryplayersmustsharetheirstrategies,bestpracticesandapproachestoprovidevaluableinsightstoregulatorsandotherindustryparticipants.Thinkglobaltoavoidthepotentialforregulatoryfragmentationacrossdifferentmarketsandtoensureharmonizedapproachestoregulationworldwideapproachtomitigatingthequantum-enabledcybersecuritythreatandforde?ningcybersecurityrequirementsSource:WorldEconomicForumandFinancialConductAuthority.ReuseandrepurposeThisprincipleencouragestheexplorationandmaximizationofexistingtools,techniquesandframeworkstoaddressquantum-enabledcybersecurityrisks.Itadvocatesforidentifyingsuccessfulstrategieselsewhereandapplyingthemtocryptographicgovernance.Forregulators,thismeansclarifyinghowcurrentregulatoryframeworksapplytothequantumthreatandcryptographicmanagementmorebroadly.Softregulatorymechanismsshouldbetheinitialpointofdeparture.Regulatorsshouldestablishclaritybyprovidingguidanceontheapplicationandscopeofcurrentregulatoryframeworkstocryptographicmanagementacrossthe?nancialsector.

Wherethereisconcreteevidenceofgapsinexistingframeworks,newregulationshouldbedeveloped.Forindustry,thismeansfollowingbestpracticeswhilereusingprocessesandtoolsfromareassuchasDevOpsandvulnerabilitymanagement.18QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches9Establishnon-negotiablessecurityisrecognizedasanon-pro?t-generatingactivityandasystemic,strategicobjectivethatultimatelycontributesto?nancialstability.Thisprinciplecallsforthede?nitionofoverarchingrequirements,

sharedbyindustryandregulatoryauthorities,toaddressquantumsecurityissues.Thesenon-negotiable,baselinerequirementsshouldensurethatbusinessactionandregulationiscustomer-focused,technologicallyneutralandoutcome-based.Therequirementsshouldfollowbestpracticesencompassingemerginginternationalstandards,anagileapproachtocryptographyandriskawarenessinanevolvinglandscape.Withtheglobal?nancialsectorbeingonlyasstrong

asitsweakestlink,collectivelearningandinsight-sharingare

essentialforcybersecurity.Ratherthanbeinga

competitivearena,cybersecurityisanessentialfoundationonwhichthe?nancialsectorrests.AvoidfragmentationRegardlessoftechnologicaladvancementsandtheirownsizeorlocation,allindustryplayersshouldstrivetomeettheserequirementstoguaranteetheintegrityandsafetyofthe?nancialsectorwhileensuringconsistencyandinteroperability.Thisprinciplecallsforaglobalapproachcentredoncollaborationtoavoidregulatoryfragmentationacrossdifferentmarkets.Fragmentationcreateschallengesforglobalentitiesoperatinginmultiplejurisdictions,addinglayersofcomplexityandcomplianceburdens.IncreasetransparencyQuantum-enabledcybersecurityrisksrequireagloballycoordinated,agileapproachtoregulationandindustryactionthatencompassesbothmatureandemergingmarkets,andisadaptivetotheevolvingrisklandscape.Thisapproachrequirescollaborationandengagementbetweenstakeholdersacrossjurisdictionstounderstandtheemergingdifferencesinapproachesandpotentialactionstoensureregulatoryharmonizationandinteroperability.Giventheglobalnatureofthe?nancialsector,

internationalalignmentandcross-bordercollaborationwillboostinnovationandbolstersecurity,reducingvulnerabilitiesbetween?rmsinanyend-to-endtransaction.Thisprincipleurgesindustryplayersandregulatorstoexchangeinformationontheirstrategies,bestpracticesandapproachesasmuchaspossible.Theyshouldalsobeencouragedtoshareevidence-based,scienti?ccommunicationaboutsecuritythreatsontheonehand,andinformationaboutpreventivemechanismsontheother.Suchopencommunicationiscrucialfordevelopingeffectiveregulatoryapproachesandbestpracticestoenableaquantum-securetransition.Transparencyestablishesalevelplaying?eldwhereQuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches

10Industry-regulatorjourney

toa

quantum-secure

economy3Thisroadmapguidesbothregulatorsandindustryintheirjointtransitiontoaquantum-secureeconomy.Themigration

toquantum-safe

systemsisan

unprecedented

taskforall,

soit

is

important

for

thecommunitytotakea

holistic

approach

and

considermultiplequantum-safe

solutions

toachievedefense-in-depth.CharlesLim,Global

Head,

QuantumCommunicationsandCryptography,JPMorgan

Chase

&

Co.QuantumSecurityfortheFinancialSector:InformingGlobalRegulatoryApproaches

11Thetransitiontoaquantum-secureeconomyisnotjustatechnologicalshiftbutacomprehensivetransformationofthe?nancialsector’s

approachtostakeholdercollaboration,cryptographicmanagementandcybersecurity.manner,

andmanyactionsspanmultiplephases.Inthissense,theroadmapissequential,iterativeandadaptableforadiverserangeofstakeholders.Theroadmapservesasa

foundationalblueprint,fosteringa

coherent

approachtosimplifyingandmanagingtheintricaciesassociatedwitha

quantum-securetransition.Itaimstocatalyseinternal

andexternal

dialogueswithinorganizationsandacrossthe?nancialsectorandtogeneratemomentumonactionstodrivethesectortowardsa

quantum-secure

future.Theroadmapisa

tooltoguidethetransitionrequiredtomaintainsecurity,integrityandconsumertrustintheglobal?nancialsector.Towards

thisgoal,theroadmapshouldnotbearace,butastrategicjourney,withsustainedcollaborationandfocusedactionamongstakeholdersacrossinternationalboundaries.Itcomprisesfourdistinctphases:prepare,clarify,guide,andtransitionandmonitor.

Eachphasebuildsontheprevious,addressingthecomplexityofthetransitioninasequentialyetinterconnectedQuantum

computingdevelopmentissettoaccelerateoverthenextdecade

andwill

triggersigni?cant

changeinthecyberthreat

landscape.

Actinginanticipationcan

improvepolicy

effectiveness,

and

isof

utmostrelevance

to

providean

inclusivetransitionpathaccounting

forthe

differenteconomic

burden

on

different

countries.GiuseppeBruno,

Director

atEconomics,StatisticsandResearch,Central

Bank

of

Italy,

ItalyFIGURE3

Overviewoftheroadmap1234TransitionandmonitorPrepareClarifyGuideAdaptanditerateSource:WorldEconomicForumandFinancialConductAuthority.Phase1.PrepareThepreparephasemarksthe?rststepforthe?nancialsector’s

journeytowardsquantumsecurityandmodernizingapproachestocryptography.Itfocusesonraisingawarenessaboutquantumrisks,understandingthecurrentstateofcryptographicinfrastructure,andbuildinginternalcapabilities.Thisphaseiscrucialfor?nancialsectororganizations,manyofwhichmayalready

beatorpastthisstage,asitlaysthegroundwork

forthetransition.Byestablishinga

clearbaseline,organizationscanaligntheirstrategieswiththeemergingquantumlandscape,ensuringtheyare

prepared

foraction.Itis

importanttoraise

awareness

among?rms

by

providingan

overview

ofhowdevelopments

inquantumcomputingmayimpact

business

modelsand

processes,

including

implicationsfor

related

regu