Featured Product

    BoE Releases Findings of Cyber Simulation Exercise in Financial Sector

    September 27, 2019

    BoE published a report on the high-level findings of cyber simulation exercise in the financial sector. The exercise, which took place on November 09, 2018, explored the resilience of financial sector to a major cyber incident impacting the UK. The exercise was commissioned by the Cross Market Operational Resilience Group jointly chaired by BoE and UK Finance. The exercise demonstrated that recommendations from the last sector exercise have been implemented and identified further opportunities for improvement.

    The exercise also successfully rehearsed work of the Cross Market Business Continuity Group, an executive-level group chaired by BoE to enable financial authorities (BoE, PRA, FCA, and HM Treasury) to interact with the sector during times of major operational disruption. Along with the financial authorities, participants included 29 of the most systemically important firms and Financial Market Infrastructures. Participants responded to a severe but plausible cyber-attack scenario targeting the sector. The following are the key findings and recommendations of the exercise:

    • Opportunities to improve the way firms coordinate at an operational level during incidents that impact the sector. To address the improvements, a review of the sector response framework will be undertaken to ensure that the sector can communicate and co-ordinate at an operational level during a crisis. In addition the Finance Sector Cyber Collaboration Center (FSCCC) will also be integrated into the response framework to ensure that the technical coordination capability it provides is incorporated into the broader response landscape.
    • Disparity in risk tolerance for suspending services could impact the functioning of the financial sector. In the case of system integrity issues, participant decision making and risk appetite for suspending services varied significantly. The future work will focus on the production of industry guidelines and good practice for managing potential controlled suspension of services and system integrity risks.
    • Recovery of services is impacted by differences in the way data is stored across the financial sector. The exercise found that the ability of participants to support another operationally paralyzed bank is constrained by the different ways in which data is stored. This restricts how contingencies could be used for the benefit of the sector as a whole. To improve response capability, work will be completed to scope the technical and data requirements for providing services via alternative channels. This will be followed by a strategy paper and playbook to support coordination of this contingency during a live incident.
    • Effective and consistent communications are key to maintaining customer and market confidence. The exercise recognized the importance of effective communications in maintaining customer and market confidence in the system. It demonstrated that use of UK Finance’s incident management communications framework and coordination has significantly improved collective communications, with public lines developed in under an hour. To improve consistency and clarity of often complex technical messaging, future work will focus on the production of industry guidelines on good incident communications practices and consistent definition and use of terminology.

    The financial authorities, in partnership with financial sector firms, will act on the recommendations resulting from this exercise and will work to deliver improvements to the resilience and response capability of the financial sector. Delivery against these recommendations has already been initiated and is planned to continue into 2020.

     

    Related Links 

    Keywords: Europe, UK, Banking, Cyber Risk, Operational Risk, Cyber Simulation Exercise, Cyber Resilience, UK Finance, BoE

    Related Articles
    News

    APRA Updates Timelines for Revision of Market Risk Standards

    The Australian Prudential Regulation Authority (APRA) released an update on the timelines for revisions to the market risk prudential standards and the implications for the broader capital framework.

    October 27, 2021 WebPage Regulatory News
    News

    BCBS and IOSCO Propose Further Policy Work on Margining Practices

    Three global standard-setters launched a joint consultation that reviews the margining practices during the COVID-19 pandemic and identifies potential areas for further policy work.

    October 26, 2021 WebPage Regulatory News
    News

    BoE Seeks Information Before Migrating Statistical Reporting to BEEDS

    The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.

    October 25, 2021 WebPage Regulatory News
    News

    EBA Finalizes Standards on Alternative SA for Market Risk

    The European Banking Authority (EBA) published the final draft regulatory technical standards on gross jump-to-default amounts and on residual risk add-on under the Capital Requirements Regulation or CRR.

    October 25, 2021 WebPage Regulatory News
    News

    FCA Publishes Final Rules on Investment Firms Prudential Regime

    The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).

    October 25, 2021 WebPage Regulatory News
    News

    ESAs Propose New Rules for Taxonomy-Related Product Disclosures

    The European Supervisory Authorities (ESAs) have delivered to the European Commission (EC) the final report on the draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR).

    October 25, 2021 WebPage Regulatory News
    News

    EBA Advice on Review of Crisis Management/Deposit Insurance Framework

    The European Banking Authority (EBA) published an advice to the European Commission (EC) on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance (CMDI) framework.

    October 25, 2021 WebPage Regulatory News
    News

    FSOC Report Issues Recommendations to Address Climate Risks

    The Financial Stability Oversight Council (FSOC) released a report in response to the U.S. President's Executive Order on climate-related financial risk.

    October 21, 2021 WebPage Regulatory News
    News

    BIS Paper Mulls Policies to Alleviate Challenges Posed by Big Techs

    The Bank for International Settlements (BIS) published a paper that examines the business models and the associated risks posed by big technology firms foraying into financial services sector.

    October 21, 2021 WebPage Regulatory News
    News

    BIS to Launch Asian Green Bond Fund Early Next Year

    The Bank for International Settlements (BIS) announced the development of an Asian Green Bond Fund, in collaboration with the development financing community, to channel global central bank reserves to green projects in Asia Pacific.

    October 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7609