HKMA Expects Banks to Assess Need for Secure Tertiary Data Backup

HKMA had invited the Hong Kong Association of Banks (HKAB) to develop guidelines on secure tertiary data backup that are appropriate for the banking landscape in Hong Kong. In response to the HKMA call, HKAB had formed an STDB Taskforce to oversee the development of the guidelines. After extensive consultation with member institutions, HKAB issued the “Secure Tertiary Data Backup Guideline” on April 30, 2021. The STDB Guideline provides guidance to banks on the factors they need to consider in deciding whether to set up an STDB and what implementation issues they need to overcome in ensuring the effectiveness of the STDB. The Guideline covers eight high-level principles grouped under the headings of Governance, Design, and Data Restoration. HKMA considers STDB an effective measure to enhance cyber resilience and data security of authorized institutions in Hong Kong. It expects all authorized institutions to critically assess the need for implementing an STDB having regard to their risk exposure and taking into account the principles stipulated in the HKAB STDB Guideline. For locally incorporated authorized institutions, the assessment report should be endorsed by the board of directors. For foreign bank branches, the assessment should be conducted under the scrutiny of their head office or regional headquarters.

Keywords: Asia Pacific, Hong Kong, Banking, Cyber Risk, Secure Tertiary Data Backup, Operational Resilience, Cyber Resilience, STDB Guideline, HKMA