FSB Sets Out Effective Practices for Cyber Incident Recovery

The toolkit presents effective practices that organizations have adopted while taking into account jurisdictions’ legislative, judicial, and regulatory frameworks, the size of the organization, the role of the organization in the financial ecosystem, and the extent to which stakeholders are affected by a cyber incident. The toolkit is composed as a resource and reference guide for effective practices using common cyber-taxonomies in a manner aligned to industry standards accessible to senior management, board of directors, or other governance or compliance, risk, and legal professionals that interface with cybersecurity technical experts in the organization, the standard-setting bodies, or the authorities. While many of these effective practices are already in use by larger organizations, they could also be valuable for smaller and less complex organizations to help strengthen their cyber resilience. FSB points out that the COVID-19 pandemic highlighted the need for many organizations and authorities to consider adjustments to cyber risk management processes, cyber incident reporting, cyber incident response, and recovery activities as well as management of critical third-party service providers (for example, cloud services) and relevant stakeholders. Effective preparation and testing of incident response and recovery plans, particularly business continuity planning, facilitated organizations’ transition to remote work and operations. Furthermore, effective communication across the supply chain, including through intra-group entities and third-party service providers, is often highlighted as a key challenge.

The draft toolkit of effective practices was published for public consultation in April 2020. In developing the consultative document, FSB conducted a stocktake of publicly released guidance from national authorities, international organizations and other external stakeholders; reviewed existing standards and case studies on past cyber incidents; and engaged with external stakeholders at workshops and bilateral meetings. FSB also drew on insights from national authorities based on their supervisory work. The public consultation period ended on July 20, 2020 and 58 responses were received from a wide range of external stakeholders, including banks, insurers, financial market intermediaries, industry associations, IT service providers, and public authorities. Drawing on the feedback from the public consultation, FSB further clarified the proportionate and risk-based nature of the toolkit to improve its usability. Second, the toolkit is better aligned with industry practices and international standards. 

Related Links

• Press Release
• Effective Practices Toolkit (PDF)
• Overview of Consultation Responses
• Responses to Consultation

Keywords: International, Banking, Insurance, Securities, Cyber Risk, Governance, Cyber Incident, Responses and Recovery, Toolkit, Operational Risk, COVID-19, Cloud Computing, Third-Party Arrangements, FSB