CMF Proposes Standard on Information Security and Cyber Security
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)
- Press Release
- Consultation Paper (PDF)
- FAQs on Consultation (PDF)
- Presentation on Consultation (PDF)
Comment Due Date: December 27, 2019
Effective Date: March 01, 2020
Keywords: Americas, Chile, Banking, Information Security, Cyber Risk, Operational Risk, FAQ, CMF
Related Articles
EC Publishes Regulations Supplementing Investment Firms Directive
The European Commission (EC) published three Delegated Regulations (2021/2153, 2021/2154, and 2021/2155) to supplement the Investment Firms Directive (IFD or Directive 2019/2034).
FSB Report Examines Trends in Non-Bank Intermediation in Americas
The Financial Stability Board (FSB) published a report that presents results of the sixth non-bank financial intermediation monitoring exercise in the Americas.
BIS Discusses Regulatory Approach for Non-Bank Intermediation
The Bank for International Settlements (BIS) published the December issue of the Quarterly Review, which analyzes the non-bank financial intermediation mechanisms that could undermine financial stability.
BoE Calls for Vendor Input for Data Collection Transformation Program
The Bank of England (BoE) opened the Alternative Liquidity Facility, or ALF, for deposits from the participating UK-based Islamic banks for the first time.
APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
EBA Proposes Standards on Interest Rate Risk in the Banking Book
The European Banking Authority (EBA) launched three consultations on technical aspects of the revised framework capturing interest rate risks for banking book (IRRBB) positions, with the comment period ending on April 04, 2022.
EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
EBA Sets Out List of Banks for Mandatory Basel III Monitoring Exercise
The European Banking Authority (EBA) published the sample of banks for the mandatory Basel III monitoring exercise, which will refer to the December 2021 data.
FED Revises Complex Institution Liquidity Monitoring Report for Banks
The Board of Governors of the Federal Reserve System (FED) is adopting a proposal to revise and extend for three years the Complex Institution Liquidity Monitoring Report (FR 2052a) for banks.
FSB Sets Out Good Practices for Crisis Management Groups
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
