Featured Product

    FSB Consults on Practices for Cyber Incident Response and Recovery

    April 20, 2020

    FSB is consulting on a toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities. The toolkit lists 46 effective practices that have been structured across seven components. These components are governance, preparation, analysis, mitigation, restoration, improvement, and coordination and communication. FSB welcomes comments and responses, by July 20, 2020, to the questions set out in the consultation. This consultation report was sent to G20 Finance Ministers and Central Bank Governors for their virtual meeting on April 15.

    Efficient and effective response to and recovery from a cyber incident by organizations in the financial ecosystem is essential to limiting any related financial stability risks. The toolkit draws from survey responses by national authorities, international organizations, and external stakeholders; a review of the existing standards and case studies of cyber incidents; engagement with external stakeholders at workshops and bilateral meetings; and insights drawn from national authorities based on their supervisory work. The toolkit is structured across the following seven components:

    • Governance—This component frames the way in which cyber incident and recovery is organized and managed. It aligns cyber incident and recovery activities with goals set for continuity of business operations. It sets the organizational structures and roles required to coordinate response and recovery across internal functions, business lines, firms, jurisdictions, or even sectors. Governance involves defining the decision-making framework and allocates responsibilities and accountabilities to ensure that the right stakeholders are engaged when a cyber incident occurs.
    • Preparation—The aim should be to establish and maintain capabilities to respond to cyber incidents and to restore critical functions, processes, activities, systems, and data affected by cyber incidents to normal operations. While preparation is a phase before an incident, it significantly and directly influences the effectiveness of cyber incident and recovery activities.
    • Analysis—Analysis is conducted to ensure effective response and recovery activities, including forensic analysis, and to determine the severity, impact, and root cause of the cyber incident to drive appropriate response and recovery activities.
    • Mitigation—Activities related to mitigation are performed to prevent the aggravation of the situation and eradicates cyber threats in a timely manner to alleviate their impact on business operations and services.
    • Restoration—Organizations repair and restore systems or assets affected by a cyber incident to safely resume business-as-usual delivery of impacted services.
    • Improvement—Organizations establish processes to improve response and recovery capabilities through the lessons learned from past cyber incidents and from proactive tools such as cyber incident and recovery exercises. Necessary changes are made to cyber incident and recovery policies, plans, and playbooks to improve the overall process as well as any necessary training and testing. Lessons learned are used in the selection and implementation of additional controls and mitigation measures.
    • Coordination and communication—The aim should be to coordinate with stakeholders to maintain good cyber situational awareness and enhance cyber resilience of the ecosystem. Progress and outcomes from the cyber incident analysis are shared with internal and external stakeholders to take actions to contain, mitigate, recover, or prevent a cyber incident and to ensure that no misunderstandings or rumors arise from lack of information. A common, secure, and trusted communication channel enhances the efficiency and security of information-sharing.

    Enhancing cyber incident response and recovery at organizations is an important focus for national authorities. National authorities are in a unique position to gain insights on effective cyber incident response and recovery activities in financial institutions from their supervisory work and from their observations across multiple organizations and peer analyses that can help suggest areas that both authorities and organizations can enhance. The final toolkit, taking on board the feedback from this public consultation, will be sent to the October meeting of G20 Finance Ministers and Central Bank Governors.

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, Cyber Incident, Governance, Response and Recovery, Toolkit, Operational Risk, Cyber Risk, FSB

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets

    The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8292