ECB Publishes the Cyber Resilience Oversight Expectations
ECB published the final cyber resilience oversight expectations for financial market infrastructures (FMIs). The cyber resilience oversight expectations are based on the global guidance on cyber resilience for financial market infrastructures. This guidance was published by CPMI and IOSCO in June 2016. ECB also published a high-level overview of the comments received during the consultation and summarized the main amendments to the cyber resilience oversight expectations.
The cyber resilience oversight expectations provide FMIs with detailed steps on how to operationalize the guidance, provide overseers with clear expectations to assess FMIs under their responsibility, and provide the basis for a meaningful discussion between the FMIs and their respective overseers. During the consultation, ECB received responses from 20 entities, including FMIs, banks, banking communities, and associations. Comments in the public consultation mostly focused on four aspects:
- Level of prescriptiveness of the expectations
- Three levels of cyber maturity and how these correspond to other international cybersecurity frameworks, which also have maturity models
- Process for oversight assessments against the cyber resilience oversight expectations
- Need for harmonization across different jurisdictions and among regulators, to reduce the fragmentation of regulatory expectations and facilitate oversight convergence
Cyber resilience is an important aspect of the operational resilience of FMIs and efficient operation of FMIs is essential for maintaining and enhancing financial stability. If not properly managed, FMIs can be sources of financial shocks, such as credit losses. They can also be a major channel through which these shocks are transmitted across domestic and international financial markets.
Related Links
- Press Release
- Cyber Resilience Oversight Guidance (PDF)
- ECB Response to Consultation
- Responses from Entities (ZIP)
- CPMI-IOSCO Guidance on Cyber Resilience
Keywords: Europe, EU, Banking, PMI, FMI, Cyber Resilience, Cyber Risk, Operational Risk, ECB
Previous Article
MFSA Updates Multiple Reporting Templates Under COREP and FINREPRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.