Featured Product

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    January 14, 2021

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability. The financial sector has been hit relatively more often by cyber-attacks than most other sectors since the pandemic started. Payment firms, insurers, and credit unions have been especially affected. While this has not yet led to significant disruptions or a systemic impact, substantial cyber risks exist for financial institutions, their staff, and their customers going forward. Financial authorities are working to mitigate cyber risks, including through international cooperation.

    The BIS Bulletin emphasizes that policy must consider two near-term trends. First, remote work is likely to remain higher than in the pre-COVID-19 period. Second, financial institutions are likely to continue to move parts of their IT operations to public cloud environments. As the market for cloud services is highly concentrated, there are warnings about increased homogeneity in the financial sector and single points of failure. A recent survey indicates that 82% of companies increased cloud usage as a result of the COVID-19 pandemic and 91% are planning a more strategic use of cloud in the near future. Through shared software, hardware, and vendors, incidents could, in principle, spread more quickly, leading to higher losses for financial institutions and stress in the financial system.

    Policymakers and businesses are actively working together to mitigate cyber risks and their systemic implications. For instance, many private- and public-sector organizations are strengthening their operational resilience and many have engaged in “war games” or simulations of cyber-attacks. These exercises can help to identify vulnerabilities and enhance preparedness and lines of communication. Moreover, financial supervisors and overseers are leveraging national or international standards and guidance to promote cyber resilience. In addition to the global initiatives, several regional groups and cooperation forums are also working to address this challenge.

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, COVID-19, Cyber Risk, Systemic Risk, Cloud Computing, BIS

    Featured Experts
    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699