27 February, 2020. risk by serving as protective barriers against hazards such as floods and storms. Operational Risk - Supervisory Guidelines for the Advanced Measurement Approaches. The Guidelines outline the EBA's expectations on how financial institutions (Banks, Insurers, Funds, Credit Unions and Payment Service Providers) across the EU should manage their internal and external risks for ICT and information security, in order to reduce the likelihood and severity of potential incidents, and covers the following critical areas: The EBA guidelines have evolved through consultation on: greater integration of third-party risk management; inclusion of change management as a risk discipline; introducing mandatory annual security awareness training; and mandating the security testing of critical systems at least annually. ... the Guidelines on security measures for operational and security risks outlined under the PSD2 regulatory framework will be complemented by the EBA guidelines. The European Commission published a consultation in December 2019 on a digital operational resilience framework, looking for input from firms on topics including ICT risk management frameworks; reporting requirements; resilience testing framework; oversight of third-party providers; information sharing. Through our experienced consultants we work together with the financial industry throughout the Nordics to implement efficient and effective ICT and security risk management. Those requirements were addressed to PSPs and their payment services, however their relevance was in fact for a broader set of institutions. Harmonization of the requirements helps financial institutions implement the guidelines as specified by the EBA. The European Banking Authority (EBA) published its draft guidelines on Information and Communication Technology (ICT) and security risk management in December 2018. In light of an increasingly interconnected economy, advances in sophisticated security attacks and incidents, and increased reliance on technology to do business, the European Banking Authority (EBA) released their final Guidelines on ICT and Security Risk Management on the 28 November 2019 (EBA/GL/2017/05). The final Guidelines come into force as of 30 June 2020, and will be the EBA's de-facto regulatory standard within the ICT and security risk management domain, replacing the previous draft guidelines. © 2020 PwC. The complexity of ICT is increasing and the frequency of ICT related incidents, including cyber incidents, is rising together with their potential significant adverse impact on the operations of financial institutions. When the finalized guidelines come into force the EBA will require all payment service providers (PSPs), credit institutions and investment firms to make every effort to comply with these guidelines. EBA guidelines on ICT and security risk management, ICT and Security Risk Management Framework (3.3), Payment Service User Relationship Management (3.8), Effective third-party risk management, with current practises exposing weaknesses in dealing with a dynamic cyberthreat, Identifying and maintaining asset inventories that link key business processes to information and IT assets, Consensus and resources around monitoring and risk reporting responsibilities, also hampering progress in change programmes. The EBA guidelines also address the need to determine whether concentration risk is a factor when outsourcing to particular service providers. Are you responsible for compliance, risk management or cyber security? It is expected that local Financial Regulators will also endorse these guidelines in due course. Then reach out to Seadot Cybersecurity for an initial discussion on your challenges. The EbA Guidelines provide clarity about the scope of EbA, the principles that define it, criteria for identifying appropriate EbA projects, safeguards ... and operational role-players, Develop your target position and determine your areas of priority, to focus your organisation's efforts and resources on addressing your most significant gaps and highest risk areas. The European Banking Authority (EBA) published its draft guidelines on Information and Communication Technology (ICT) and security risk management in December 2018. Final Guidelines Joint Guidelines under Articles 17 and 18(4) of Directive (EU) 2015/849 on simplified and enhanced customer due diligence and the factors credit and financial institutions should consider when assessing the money laundering and terrorist financing risk Regulatory compliance is everywhere. JC 2017 37 04/01/2018 . The European Banking Authority (EBA) will publish two delayed sets of operational risk and internal governance guidelines in the next two months, according to Bernd Rummel, who focuses on internal governance, operational risk and auditing at the new European regulatory agency. The EBA Guidelines on the Management of Operational Risks in Market-Related Activities are divided into three sections: Act on the Supervision of Trust Offices (Wet toezicht trustkantoren – Wtt), Anti-Money Laundering and Anti-Terrorist Financing Act, Regulations establishing European Supervisory Authorities, Policy Rule on Maximising the deposit and exposures ratio under the Wft, Governance: Management and internal supervision, EBA guideline implementation issues of operational risk, Consolidated scope for Policy Rule on Concentration Risk, Valuation of mortgage loans in the adequacy test, Governance: Statutory requirements with respect to management of IT risks, DNB's opinion on the independent functioning of the supervisory board, Governance of risk management at insurers. Therefore, it is critical that financial institutions manage the ICT risks they have. The EBA Guidelines on the Management of Operational Risks in Market-Related Activities are divided into three sections: governance mechanisms;