Featured Product

    MAS Revises Guidelines on Technology Risk Management

    January 18, 2021

    MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development. Post a consultation, the enhancements include new guidance on effective cyber surveillance, secure software development, adversarial attack simulation exercise, and management of cyber risks posed by the emerging technologies such as Internet of Things. MAS also published a response to the feedback received during the consultation process, in addition to a set of the frequently asked questions (FAQs) on the guidelines.

    The guidelines on technology risk management set out the risk management principles and best practices to guide financial institutions, including banks, to establish sound and robust technology risk governance and oversight and to maintain cyber resilience. In particular, for financial institutions, the guidelines set out:

    • Expectations to have in place effective technology risk management practices and controls to protect the information technology infrastructure: the institutions are required to test and validate the effectiveness of the recovery process once every 12 months.
    • Enhanced risk mitigation strategies to establish a robust process for the timely analysis and sharing of cyber threat intelligence within the financial ecosystem and to conduct cyber exercises to allow institutions to stress test their cyber defenses by simulating the attack tactics, techniques, and procedures used by real-world attackers.
    • Expectations to exercise strong oversight of arrangements with third-party service providers, to ensure system resilience as well as maintain data confidentiality and integrity.
    • Additional guidance on the roles and responsibilities of the board of directors and senior management: the board and senior management should ensure that a Chief Information Officer and a Chief Information Security Officer, with the requisite experience and expertise, are appointed and accountable for managing technology and cyber risks and the board should include members with the relevant knowledge to provide effective oversight of technology and cyber risks.
    • Expectations to establish and continuously improve IT processes and controls to preserve confidentiality, integrity and availability of data and information technology systems. Security measures should be implemented to prevent and detect the use of unauthorized internet services that allow users to communicate or store confidential data; examples of such services include social media, cloud storage, and file sharing, e-mails, and messaging applications.

    MAS expects financial institutions to observe the guidelines on technology risk management as this will be considered in the risk assessment of MAS with respect to the financial institutions. The guidelines provide general guidance and are not intended to be comprehensive nor replace or override any legislative provisions. They should be read in conjunction with the provisions of the relevant legislation, the subsidiary legislation made under the relevant legislation, as well as written directions, notices, codes, and other guidelines that MAS may issue from time to time pursuant to the relevant legislation and subsidiary legislation. In particular, the guidelines should be read with the Notice on Technology Risk Management and Notice on Cyber Hygiene.

     

    Keywords: Asia Pacific, Singapore, Banking, Insurance, Securities, Technology Risk, Cyber Risk, FAQ, Internet of Things, Governance, Cyber Resilience, MAS

    Related Articles
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    CBE Issues Additional Measures to Ease Disruptions from Pandemic

    The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7868