September 23, 2022
Federal Reserve Board invitations touch upon updates to operational risk-management necessities for sure systemically essential monetary market utilities (FMUs) supervised by the Board
For launch at 2:00 p.m. EDT
The Federal Reserve Board on Friday invited touch upon updates to operational risk-management necessities for sure systemically essential monetary market utilities (FMUs) supervised by the Board. FMUs present important infrastructure to clear and settle funds and different monetary transactions upon which the monetary markets and the broader economic system rely to perform successfully. The proposed updates typically present extra specificity to the prevailing necessities.
The broad operational danger, expertise, and regulatory panorama wherein FMUs function has developed considerably for the reason that Board final up to date its danger administration necessities for FMUs in 2014. New challenges have emerged, resembling the worldwide pandemic and cyber occasions, whereas new technological developments could enhance resilience. The proposed adjustments would promote efficient danger administration on this quickly evolving danger atmosphere.
“In gentle of the quickly evolving danger panorama, the proposed adjustments will assist make sure that key monetary market utilities function with a excessive stage of resilience and stay a supply of power for the monetary system,” stated Vice Chair Lael Brainard.
The proposal addresses 4 key areas: incident administration and notification; enterprise continuity administration and planning; third-party danger administration; and overview and testing of operational danger administration measures. For instance, the proposal would explicitly require FMUs to ascertain an incident administration framework and would emphasize the necessity for FMUs to proceed to advance their cyber resilience capabilities. The proposed updates are largely per current measures that FMUs take to adjust to the present necessities.
Feedback on the proposed adjustments should be submitted inside 60 days from the date of publication within the Federal Register.
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October 06, 2022