Moving beyond capital and liquidity, as U.S Finance Regulators look to test the the operation resilience of U.S banks.

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Moving beyond capital and liquidity, as U.S Finance Regulators look to test the the operation resilience of U.S banks. Several notable issues have arose in the past 12 months with banks failing to adequately manage credit risk (Silicon Valley bank, signature bank, New York Community bank). Indicating that capital and liquidity may not be the only concern of regulators, when it comes to operational resilience. The actual testing of banks ability to remain resilient maybe forefront of mind.

The Acting Comptroller of Currency Michael Hsu “The sheer magnitude of what can be disrupted has increased significantly—a trend likely to continue for the foreseeable future,” Hsu said. “As the threat surface for disruptions expands, and as authorities in other jurisdictions begin implementing their rules to ensure operational resilience, we are assessing and working with our interagency peers to develop the right approach here in the U.S.” Wall Street Journal.

One wonders if we will see a range of catastrophic risk scenarios that regulators will expect financial institutions to stress test over the coming months. Not only to demonstrate capital adequacy, but risk mitigation and resilience planning? Catastrophic scenarios that will focus on the resilience of organisations to a broader range of cyber risks.

One must remember, ransomware is not the biggest cyber risk. If you can ransom an organisations data you can damage its infrastructure.

@Thaddeus Dziekanowski Brian D. McCarthy

Veritas GRC

Federal Reserve Board European Central Bank Office of the Comptroller of the Currency

#cybersecurity #cyberriskmanagement #cyberresilience

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