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Guidelines on ICT and Security Risk Management Issued by Financial Regulators

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In a bid to strengthen the resilience of financial institutions, regulatory bodies have issued guidelines on ICT and security risk management. The guidelines aim to ensure that financial institutions have adequate internal governance and control frameworks in place to manage their ICT and security risks.

Compliance Requirements

According to the guidelines, all financial institutions must comply with the provisions set out in the document in a way that is proportionate to their size, organization, and nature of business. The guidelines also emphasize the importance of having clear roles and responsibilities for ICT functions, information security risk management, and business continuity.

Responsibilities

The management body of financial institutions is responsible for ensuring that there are adequate internal governance and control frameworks in place for ICT and security risks. This includes:

  • Setting clear roles and responsibilities
  • Allocating sufficient resources
  • Providing training to staff on ICT and security risks

ICT Strategy

The guidelines also stress the importance of having an effective ICT strategy that aligns with the overall business strategy of financial institutions. The ICT strategy should define how ICT systems will evolve to support and participate in the business strategy, as well as planned changes to the architecture of ICT systems.

Action Plans

Furthermore, financial institutions are required to establish sets of action plans that contain measures to achieve the objectives of the ICT strategy. These action plans must be communicated to all relevant staff, including contractors and third-party providers where applicable.

Information Security Risk Management

The guidelines also emphasize the importance of information security risk management, including the protection of sensitive data and the prevention of unauthorized access to financial systems.

Key Points:

  • Financial institutions must comply with guidelines on ICT and security risk management in a way that is proportionate to their size and organization.
  • The management body is responsible for ensuring adequate internal governance and control frameworks are in place.
  • Financial institutions must have clear roles and responsibilities for ICT functions, information security risk management, and business continuity.
  • An effective ICT strategy must be aligned with the overall business strategy of financial institutions.
  • Action plans must be established to achieve the objectives of the ICT strategy.
  • Information security risk management is crucial for protecting sensitive data and preventing unauthorized access to financial systems.

What This Means for Financial Institutions:

The guidelines on ICT and security risk management are aimed at strengthening the resilience of financial institutions by ensuring they have adequate internal governance and control frameworks in place. Financial institutions must comply with the guidelines, which will require them to establish clear roles and responsibilities, allocate sufficient resources, and provide training to staff on ICT and security risks. The guidelines also emphasize the importance of having an effective ICT strategy that aligns with the overall business strategy of financial institutions.