FFIEC Issues Booklet on Risk Management Process for IT Infrastructure
FFIEC issued the "Architecture, Infrastructure, and Operations" booklet of the FFIEC Information Technology Examination Handbook. This booklet provides guidance to examiners on risk management processes that promote sound and controlled execution of information technology architecture, infrastructure, and operations at financial institutions. The examination procedures in this booklet help examiners evaluate an institution’s controls and risk management processes relative to the risks of technology systems and operations that reside in, or are connected to, the institution. The booklet replaces the Operations booklet issued in July 2004.
The "Architecture, Infrastructure, and Operations" booklet focuses on enterprise-wide, process-oriented approaches that relate to the design of technology within the overall business structure, implementation of IT infrastructure components, and delivery of services and value for customers. The booklet discusses the principles and practices for IT and operations as they relate to safety and soundness, consumer financial protection, and compliance with applicable laws and regulations. It also discusses the management oversight of architecture, infrastructure, and operations and its related components that examiners may encounter during their reviews; these related components include governance; common risk management topics; specific activities of architecture, infrastructure, and operations; and the evolving technologies such as cloud computing, microservices, artificial intelligence, and zero trust architecture. The booklet explains that architecture, infrastructure, and operations are separate but related functions that, together, assist management in overseeing activities related to designing, building, and managing the technology of an entity. It also discusses how appropriate governance of the architecture, infrastructure, and operations functions and related activities can
- promote risk identification across banks, nonbank financial institutions, bank holding companies, and third-party service providers.
- support implementation of effective risk management.
- assist management through the regular assessment of the strategies and plans of an entity
- promote alignment and integration between the functions.
Related Links
Keywords: Americas, US, Banking, Governance, Technology Risk, Third-Party Service Providers, Information Technology, Cloud Computing, IT Handbook, FFIEC
Previous Article
FED Updates Form and Instructions for FR Y-9C ReportingNext Article
HKMA Intensifies Focus on Regtech AdoptionRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
