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

    EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR

    The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).

    January 20, 2022 WebPage Regulatory News
    News

    OSFI Issues Results of Pilot on Climate Risk Scenario Analysis

    The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.

    January 20, 2022 WebPage Regulatory News
    News

    ECB Issues Opinions on Green Bonds Standard and CRR Proposals

    The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.

    January 19, 2022 WebPage Regulatory News
    News

    ESRB Explores Policy Response to Risks Arising from Digitalization

    The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.

    January 18, 2022 WebPage Regulatory News
    News

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.

    January 17, 2022 WebPage Regulatory News
    News

    FI Publishes Multiple Regulatory and Reporting Updates

    The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.

    January 17, 2022 WebPage Regulatory News
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7875