CMF Proposes Standard on Information Security and Cyber Security

By Regulatory News

November 25, 2019

CMF is consulting on the standard for management of information security and cyber security. The proposed standard establishes a series of guidelines and best practices that should be considered by entities in their process of information-security and cyber-security management. This will allow the entities to be better prepared for a scenario in which the management of operational risk becomes increasingly relevant. The guidelines will apply to banks, banking subsidiaries, bank draft support companies, and payment card issuers and operators. The comment period for this consultation ends on December 27, 2019. The instructions set forth in this standard will be effective as of March 01, 2020.

The new chapter of the Updated Collection of Standards (RAN) for banks and other relevant entities contains a series of provisions that are based on international best practices and that should be considered for the management of information security and cyber security. The new chapter of the RAN complements different regulations of CMF, which include chapters on evaluation of operational risk management (Chapter 1-13), risks that entities assume in outsourcing services (Chapter 20-7), information on operational incidents (Chapter 20-8), and business continuity management (Chapter 20-9). The standard is divided into four sections:

The first section establishes general guidelines for the management of information security and cyber-security matters. Among them, the role of Board of Directors for the proper management of information security and cyber security is highlighted, giving the Board the responsibility of approving the institutional strategy in this area.
The second section establishes guidelines that institutions should consider for the implementation of a risk management process to support the information security and cyber-security system. Thus, the minimum stages of an information security and cyber-security risk management process are established.
The third section mainly establishes two aspects of relevance in cyber-security management. One aspect is the determination of the cyber-security critical assets, including physical components such as hardware and technological systems that store, manage, and support these assets. The other aspect underlines the relevance of the protection functions of these assets, the detection of threats and vulnerabilities, the response to incidents, and the recovery of the normal operation of the entity.
The fourth and final section contemplates the importance that entities have policies and procedures for the identification of assets that make up the critical infrastructure of the financial industry and the payment system as well as for the adequate exchange of incident information with other members.

Related Links (in Spanish)

Comment Due Date: December 27, 2019

Effective Date: March 01, 2020

Keywords: Americas, Chile, Banking, Information Security, Cyber Risk, Operational Risk, FAQ, CMF

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