Pub. 5 2016 Issue 8

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 18 W ith regulators commenting over the past 24 months that information security is the biggest threat banks face today, more and more emphasis is being placed on the bank’s board of directors. Regulators expect the ctors to effectively manage your bank’s technology , similarly to how the board manages credit, interest , liquidity and other risks your bank faces. s was recently reinforced when the Federal Financial itutions Examination Council (FFIEC) member ncies issued the newly revised Information Security klet. Throughout the nearly 100-page release, the k’s board is named 40 times in reference to activities responsibilities your board should be performing. newly revised booklet addresses the necessary ors to assess the level of security risks to a financial itution’s information systems. The booklet also contains ated examination procedures to help examiners evaluate adequacy of the information security program’s gration into overall risk management. OUR BANK’S BOARD IS REFERENCED 40 MES IN THE FFIEC’S NEWEST RELEASE earnings, reduced capital and decreased shareholder value. Institutions should maintain effective information security programs commensurate with their operational complexities. Such programs require strong board and senior management support to be successful in reducing risk and meeting regulatory expectations. Last year, the FFIEC had more releases on information technology than on any other topic, and there are likely to be more releases on information technology later this year. Are the people and outside firms you depend on for your bank’s information technology up to the task of addressing the rapidly increasing risks your bank faces? How will you ensure that your technology is flexible enough to meet changing customer demand for new services, applications and capabilities while also ensuring you’re smartly managing your time and capital expenditures? For information on assisting your board in addressing strategies for reducing financial, regulatory and reputational risk your bank faces with its technology systems, contact us at solutions@bankonitusa.com. YOUR BANK’S BOARD IS REFEREN ED 40 TIMES IN THE FFIEC’S NEWEST RELEASE W ITH REGULATORS COMMENTING over the past 24 months that information security is e biggest threat b nks face today, more and more emphasis is being placed on the bank’s board of directors. Regulators expect the directors to effectively manage your bank’s technology risk, similarly to how the board manages credit, interest rate, liquidity and other risks your bank faces. This was recently reinforced when the Federal Financial Institutions Examination Council (FFIEC) member agencies issued newly revised Information Security Booklet. Throughout the nearly 100-page release, the bank’s board is named 40 times in reference to activities and responsibilities your board should be performing. The newly revised booklet addresses the necessary factors to assess the level of security risks to a financial institution’s information systems. The booklet also contains updated examination procedures to help examiners evaluate the adequacy of the information security progra ’s integration into overall risk management. Information security exists to provide protection from actions and vents that increase the risk of impaired earnings, reduced capital and decreased shareholder value. Institutions should maintain effective information security programs commensurate with their operational complexities. Such programs require strong board and senior management support to be successful in reducing risk and meeting regulatory expectations. Last year, the FFIEC had more releases on information technology than on any other topic, and there are likely to be more releases on information technology l ter this year. Are the people and outside firms you depend on for your bank’s information technology up to the task of addressing the rapidly increasing risks your bank faces? How will you ensure that your technology is flexible enough to meet changing customer demand r new servic s, applications and capabilities while also ensuring you’re smartly managing your time and capital expenditures? For information on assisting your board in addressing strategies for reducing financial, regulatory and reputational risk your bank faces with its technology systems, contact us at solutions@bankonitusa.com.