CMF published a regulation that establishes a series of guidelines and best practices that certain regulated entities must comply with in their process of managing information security and cybersecurity. CMF also published a presentation and a set of frequently asked questions with respect to this regulation. The regulation will become effective on December 01, 2020 and is applicable for banks, bank affiliates, bank draft support companies, and issuers and payment card operators. CMF expects this regulation to be a frame of reference for future changes in this area for other institutions, such as credit unions and entities in the securities and insurance industry.
The adoption of this new regulation will allow entities to be better prepared to prevent and act against operational events related to information security and cybersecurity. CMF has published the new Chapter 20-10 of the Updated Compilation of Standards (RAN); this new chapter contains a series of provisions, based on international best practices, that must be considered for the management of information security and cybersecurity. This new RAN Chapter complements the provisions of different regulations of CMF, such as those established in Chapter 1-13 on the evaluation of operational risk management; Chapter 20-7 regarding the risks that entities assume in the outsourcing of services; Chapter 20-8 on information on operational incidents; and Chapter 20-9 on business continuity management. Until December 01, 2020, when this regulation becomes effective, banks must continue to comply with the provisions of current Chapter 1-13 in the field of operational risk—particularly in relation to information security and cybersecurity. The new guidelines address the following key elements:
- Guidelines on the role of the Board of Directors for proper management of information security and cybersecurity, granting it responsibility for approval of the institutional strategy in this matter. In addition, a Board of Directors must ensure that an entity maintains an information security and cybersecurity management system that contemplates the specific administration of these risks.
- Banks and financial institutions shall define the minimum stages of an information security and cybersecurity risk management process, considering at least the identification, analysis, assessment, treatment, and acceptance of the risks. to which the information assets are exposed, as well as their permanent monitoring and review.
- Entities need to define their critical assets and their protection functions, ensure detection of threats and vulnerabilities, and focus on the response to incidents and the recovery of the normal operations.
- Entities must also have policies and procedures for the identification of assets that make up the critical infrastructure of the financial industry and the payment system and for the adequate exchange of technical information on incidents that affect, or could affect, the cybersecurity.
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Keywords: Americas, Chile, Banking, Cyber Risk, Operational Risk, Information Security, Cyber Incident, CMF
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