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
Previous ArticleBOG to Explore New Prudential and Market-Conduct Measures for Banks
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.