Financial Crime World

Financial Institution’s Cyber and Technology Risk Appetite and Tolerance Statement

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[Financial Institution Name] has developed a comprehensive Cyber and Technology Risk Appetite and Tolerance Statement to outline its willingness to assume cyber and technology risks in order to achieve its business goals and execute its technology strategy.

Risk Appetite

Our risk appetite for cyber and technology risks is defined as follows:

  • We are willing to accept a moderate level of risk to ensure the effective execution of our technology strategy.
  • We will not compromise the confidentiality, integrity, or availability of customer data or financial assets in order to achieve business goals.

Risk Tolerance

Our risk tolerance for cyber and technology risks is defined as follows:

  • We will not tolerate any cyber or technology incidents that could result in significant financial losses, reputational damage, or disruption to our operations.
  • We will continuously monitor and assess the effectiveness of our risk management framework to ensure that it remains adequate and effective.

Regular Reporting

We will receive regular and timely reports on material cyber and technology incidents, as well as updates on the evolving threat landscape, findings from internal audits and testing exercises, and the overall status and effectiveness of our cyber and technology risk management framework.

Board Oversight

Cyber and technology risk management matters will be adequately discussed at board and relevant sub-committee meetings. Our board has appointed a senior officer as Chief Information Security Officer (CISO) to provide expert advice and oversight on these matters.

Oversight and Coverage

We will ensure that our control functions and external auditors have adequate oversight and coverage of our cyber and technology risks, taking into consideration the requirements of this guideline. We will also promote a strong culture of cyber and technology resilience throughout the organization.

Cyber and Technology Risk Sub-Committee

Our board has established a distinct Cyber and Technology Risk Sub-Committee to oversee the institution’s technology strategy, cyber and technology risk management strategy, and framework implementation. The sub-committee will receive regular reports on cyber and technology-related matters from relevant stakeholders and report quarterly to the Board.

Roles and Responsibilities

Senior management is responsible for:

  • Implementing the technology strategy and cyber and technology risk management framework
  • Ensuring that our level of cyber and technology risk remains within our defined risk appetite and tolerance
  • Defining roles and responsibilities for cyber and technology risk management staff
  • Developing key performance metrics and indicators to monitor cyber and technology risks

The CISO will be responsible for:

  • Development and implementation of the cyber and technology risk management framework
  • Providing quarterly reports to the board on the institution’s cyber and technology risk position
  • Keeping the Chief Risk Officer informed of cyber/technology risk-related issues
  • Providing support to the board, relevant sub-committees, and senior management on matters related to cyber and technology risk management

By adopting this Cyber and Technology Risk Appetite and Tolerance Statement, [Financial Institution Name] is committed to managing its cyber and technology risks in a proactive and responsible manner, ensuring the confidentiality, integrity, and availability of customer data and financial assets.