In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk. The agencies issued this statement to remind supervised financial institutions of sound cyber-security risk management principles that can reduce the risk of a cyber-attack and minimize business disruptions.
These principles elaborate on standards articulated in the Interagency Guidelines Establishing Information Security Standards as well as resources provided by FFIEC, such as the Statement on Destructive Malware. While preventive controls are important, financial institution management should be prepared for a worst-case scenario and maintain sufficient business continuity planning processes for the rapid recovery, resumption, and maintenance of the operations of an institution. The following are the key highlights of the statement:
- The Department of Homeland Security has indicated there is heightened risk of cyber-attack against U.S. targets because of increased geopolitical tension.
- The current environment provides an opportunity for banks to re-evaluate the adequacy of safeguards to protect against various types of cyber-security risk.
- The attached Heightened Cybersecurity Risk document highlights principles previously articulated by FDIC and other banking regulators including: business resilience, authentication, system configuration, security tool, data protection, and employee training.
- When banks apply cyber-security risk management principles and risk mitigation techniques, they reduce the risk of the success of a cyber attack and minimize the negative impacts of a disruptive and destructive cyber attack.
- Joint Statement
- Guidelines Establishing Information Security Programs
- FFIEC Cyber-Security Awareness Resources
Keywords: Americas, US, Banking, Cyber Risk, Cyber Attack, Business Continuity, Cyber Security, OCC, FDIC
HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.
ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.
PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.
FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).
HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.
EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).
Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.
EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).
BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.