Quantum computing and the Chief Risk Officer

Episode 3 - Quantum Technology Explained series

Link to Episode 2

Quantum computing is a new technology in the computer world. It is the product of advancements in quantum physics driven by the demand to solve problems that classical computers cannot tackle.

Classical computers, like the PCs and laptops that we all use today, efficiently run many programs. However, some classes of calculations, such as prime number factorisation, are overly strenuous tasks for classical computers. The complexity of solving such problems with classical computers is the basis of data protection. In other words, this difficulty underpins many cryptography algorithms.

In 1990, quantum computing was a mathematical concept. In 2005, the development of the first hardware elements of a quantum computer marked its first step towards being a real technology. Today, quantum computing is no longer "future technology". It is a reality.

Perhaps most significantly, confidential data protected by classical cryptographic algorithms is at risk. Company data from encrypted messages to classified financial information is potentially under threat. The data could be compromised by the Harvest Now Decrypt Later attack. The essence of this attack is to record and store sensitive encrypted data today to decrypt it when a quantum computer becomes widely available. This attack is valid now because the remaining time estimated until a sufficiently powerful quantum computer becomes available falls within the time frame that many organisations must protect their data for.

With such revolutionary technology on the horizon, the only wrong behaviour is to do nothing. If you are a Chief Risk Officer, you should account for quantum computing today.

As a CRO, you can take the following steps today to prepare your company:

1. Begin the quantum conversation early to increase organisational awareness and dispel fear of the unknown.

2. Document high-level quantum risks in the company's risk register. These are likely to have the highest severity and lowest probability.

3. If you work for a digital company, run IT asset readiness analysis in the face of quantum risk.

4. Keep track of advances in the quantum computing space.

With ever-increasing investment in quantum research by governments and private funds, quantum capabilities could materialise faster than anyone expects.

Post your questions in the comments below. Contact Alexey Bocharnikov if you have any questions.