Compliance Risk Management for Hungarian Financial Institutions

Compliance Risk Management: A Must for Hungarian Financial Institutions Amidst Cloud Transformation

In Hungary, the transition to cloud computing has brought about new challenges for financial institutions. While they navigate IT and technological risks, they must also address compliance risks to avoid penalties and reputational damage.

The Importance of Compliance in Hungarian Financial Institutions

According to the 4/2019 MNB recommendation, also known as the “cloud recommendation,” financial institutions must ensure full compliance with its provisions. This includes:

Ensuring the security and integrity of customer data
Implementing robust information security measures
Conducting regular risk assessments and audits
Developing and maintaining a comprehensive risk management framework

Risk Management Solutions for Hungarian Financial Institutions

To address these challenges, risk management experts are offering a range of services, including:

Gap Assessments and Cloud Risk Analysis

Experts can help identify vulnerabilities and develop an exit plan to ensure full compliance with regulatory requirements.

IT Risk Assessment Tools

These tools provide practical recommendations to minimize information security risks and support regular information security risk assessments required by the 42/2015 government decree.

Independent Risk Assessments

Experts can provide unbiased evaluations based on tested work programs, covering physical and human security risk assessments, as well as adequate risk-based countermeasures.

System Integrity Reviews

These reviews must be conducted by an independent party under the 42/2015 government decree, ensuring that Hungarian financial institutions remain compliant and secure in their operations.

The Role of Independent Parties in Compliance Risk Management

The MNB emphasizes the importance of independent parties in compliance risk management. Experts who have experience with common solutions used in the Hungarian market can perform reviews and assessments effectively, such as:

Remote client identification processes and systems
System integrity reviews