Financial Crime World

Financial Sector Regulators Discuss Jurisdictional Issues, Governance, and Risk Management

A recent seminar on strengthening cybersecurity in financial institutions brought together regulators from Trinidad and Tobago to discuss jurisdictional issues, governance, and risk management. The event was organized by the Central Bank of Trinidad and Tobago (CBTT) and focused on the growing importance of cybersecurity in the financial sector.

Third-Party Risk Management

The seminar highlighted the increased use of third parties within the financial sector, growing dependencies, regulatory best practices, and supervisory challenges. Regulators emphasized the need for stronger guidelines to manage third-party risk and ensure the integrity of financial systems.

  • The importance of robust risk assessment was stressed.
  • Incident response planning and regular testing of cybersecurity controls were discussed as key elements of a comprehensive risk management strategy.

Governance and Risk Management

Regulators also discussed governance and risk management issues, including:

  • The importance of robust risk assessment, incident response planning, and regular testing of cybersecurity controls.
  • The need for financial institutions to prioritize cybersecurity and invest in necessary resources to protect their customers’ data.

Jurisdictional Issues

The event also touched on jurisdictional issues, with regulators from different countries sharing experiences on how they approach cybersecurity supervision. Participants discussed the challenges of coordinating efforts across borders and the need for international cooperation to combat cyber threats.

Recommendations

Based on the discussions, the CBTT has issued several recommendations aimed at strengthening cybersecurity in the financial sector:

  • Augment resources in ICT/cyber risk supervision to keep pace with rapid technological advancements.
  • Develop a comprehensive cybersecurity guideline that addresses jurisdictional issues and governance concerns.
  • Prioritize incident response planning and regular testing of cybersecurity controls.
  • Encourage financial institutions to invest in necessary resources to protect their customers’ data.

The seminar concluded that strengthening cybersecurity in the financial sector requires a collaborative effort from regulators, financial institutions, and other stakeholders. By working together, they can ensure the integrity of financial systems and protect consumers from cyber threats.