Featured Product

    BIS Paper Offers Overview of Cyber Risk in Central Bank Community

    September 14, 2022

    The Bank for International Settlements (BIS) published a paper that examines how central banks assess cyber risk and associated macroeconomic costs and how they judge preparedness of the financial sector in their jurisdiction. The paper discusses cyber risk priorities and challenges from the perspective of experts and practitioners in central banks for their own operations, including the critical financial market infrastructures they operate.

    The focus of the paper is on the assessment of cyber risk landscape in the central banking community, leveraging a survey conducted in 2021 among 21 participating central banks from advanced and emerging market economies. The survey results show that central banks have increased their cyber-security investments since 2020, with a priority on technical security control and resiliency. Central banks see phishing and social engineering as the most common methods of attack and the potential losses from a systemically relevant cyber-attack are deemed to be large, especially if the target is a big tech providing critical cloud infrastructure. The paper discusses the implications of the increasing cloud adoption by financial institutions, which presents many opportunities for cyber-attacks. One of the challenges of cloud adoption is that, in the absence of a well-defined perimeter, information security is threatened by a lack of consistently applied security controls. Examples include vulnerable application programming interfaces (APIs), incorrect configurations, and weak identity and access management. Another challenge relates to the choice of cloud provider, not least when considering data sovereignty issues. The legal and regulatory framework in place in the country in which the data are hosted and/or processed becomes a key criterion when choosing which critical services to move to the cloud.

    The paper notes that, while central banks in most emerging market economies provide a framework for collection of information on cyber-attacks on financial institutions, less than half of those in advanced economies do. Cooperation among public authorities, especially in the international context, could improve the ability of central banks to respond to cyber-attacks. The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (CPMI-IOSCO) guidance on cyber resilience for financial market infrastructures represents an important benchmark for governance, business continuity management, and identification of the sources of operational risk. Much international work has been conducted by standard-setting bodies, the FSB, and the G7. The BIS’s Cyber Resilience Coordination Center provides a structured approach to knowledge-sharing, collaboration, and operational readiness among central banks in the areas of cyber resilience. Finally, by providing a platform for collaboration between central banks, regulatory authorities, financial institutions, technology firms, and cyber-security experts, the BIS Innovation Hub aims to facilitate the development of specific projects to limit cyber threats for central banks and the broader financial sector. 

     

    Related Links

     

    Keywords: International, Banking, Regtech, Cyber Risk, Cloud Service Providers, Central Banks, Cloud Computing, Suptech, BIS

    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596