General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
December 04, 2018

BCBS published a report that identifies, describes, and compares the range of observed bank, regulatory, and supervisory cyber-resilience practices across jurisdictions. The challenges and initiatives to enhance cyber-resilience have been summarized in the form of 10 key findings and illustrated by case studies that focus on concrete developments in the jurisdictions covered. BCBS classifies the expectations and practices into four broad dimensions of cyber-resilience: governance and culture; risk measurement and assessment of preparedness; communication and information-sharing; and interconnections with third parties.

The following are some of the key findings of the study:

  • While regulators generally do not require a specific cyber strategy, all expect institutions to maintain adequate capability in this area as part of their global strategies. In most jurisdictions, broader IT and operational risk management practices are quite mature and are used to address cyber-risk and supervise cyber-resilience.
  • Although management models such as the three lines of defence (3LD) model are widely adopted, cyber-resilience is not always clearly articulated across the technical, business, and strategic lines. This confusion in roles and responsibilities hampers the effectiveness of the 3LD model.
  • Although some forward-looking indicators of cyber-resilience are being picked up through the most widespread supervisory practices, no standard set of metrics has emerged yet. This makes it more difficult for supervisors and banks to articulate and engage on cyber-resilience.
  • Most observed information-sharing mechanisms involve bank-to-bank and bank-to-regulator communications, with the former being mostly done on a voluntary basis.
  • Regulatory frameworks for outsourcing activities across jurisdictions are quite established and share substantial commonalities. However, there is no common approach regarding third parties beyond outsourced services, which implies different scopes of regulation and supervisory actions. While third parties may provide cost-effective solutions to increase resilience levels, the onus remains on the banks to demonstrate adequate understanding and active management of the third-party dependencies and concentration across the value chain

In preparing this range of practices document, BCBS relied on input from its member jurisdictions in response to a survey conducted by FSB in April 2017. By describing the diversity of approaches thematically, the report will help banks and supervisors navigate the regulatory environment and will serve as a useful input for identifying areas where further policy work by the Basel Committee may be warranted. Going forward, the Committee will integrate the cyber dimension into its broader operational resilience work. 

 

Related Links

Keywords: International, Banking, Regtech, Suptech, Cyber Resilience, Operational Risk, Cyber Risk, BCBS

Related Insights
News

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News
News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News
News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News
News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News
News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News
News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News
News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News
News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News
News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473