MAS Emphasizes Need to Review Security Controls Amid COVID
The Cyber Security Advisory Panel (CSAP) of MAS held a meeting in November 2020. At the meeting, the Panel shared insights on cyber risks in the new operating environment and made several recommendations related to the risk profiles of financial institutions and third-party vendors and the use of open-source software. Meanwhile, MAS is also consulting on the requirements to strengthen the identity verification process of financial institutions, with the comment period ending on December 09, 2020. This measure is intended to address the risk of impersonation fraud arising from the theft and misuse of an individual’s personal particulars.
The MAS Managing Director Ravi Menon, who chaired the meeting, said that the "CSAP members have provided useful recommendations on maintaining cyber security against the backdrop of growing reliance on remote working arrangements and cloud service providers." The following are the key recommendations from the CSAP meeting:
- Reviewing risk profiles and adequacy of risk mitigating measures. The meeting highlighted the need for financial institutions to assess if their existing risk profiles have changed and remain acceptable. This is to ensure that, in the long run, appropriate controls are implemented to mitigate any new risks.
- Maintaining oversight of third-party vendors and their controls. With the increased reliance on third-party vendors, the Panel emphasized the need for financial institutions to step up their oversight of these counterparts and to monitor and secure remote access by third-parties to financial institutions’ systems. This is even more important during the COVID-19 pandemic where remote working has become pervasive.
- Strengthening governance over the use of open-source software. Vulnerabilities in open-source software are typically targeted and exploited by threat actors. The Panel recommended that financial institutions establish policies and procedures on the use of open-source software and to ensure that the code is robustly reviewed and tested before deployment in the IT environment of financial institutions.
Over two days of virtual meetings, the Panel also exchanged views with the Association of Banks in Singapore Standing Committee on Cyber Security (SCCS) and the Insurance SCCS on enhancing cloud resiliency, monitoring insider threats, and the role of cyber insurance in risk management. Participants included representatives from government agencies such as the Ministry of Communications and Information, the Ministry of Defense, and the Government Technology Agency.
Comment Due Date: December 09, 2020
Keywords: Asia Pacific, Singapore, Banking, Securities, Cyber Risk, CSAP, COVID-19, Fintech, Regtech, Open Source Software, Cloud Computing, Third Party Vendors, MAS
Previous Article
EC Seeks Feedback for Initiative to Review BRRD, SRMR, and DGSDRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.
