Cybersecurity threats are the biggest challenge facing the financial services industry, the Financial Stability Oversight Council (FSOC) declared in its annual report, calling on federal regulators to ensure that banks are taking appropriate steps to protect their businesses.
What happened
Established by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the FSOC is made up of representatives from each of the federal financial regulators. As in prior years, the report highlighted the major risks currently facing financial institutions.
At the top of the list: cybersecurity. The threat of cyber incidents continues to grow, the FSOC cautioned, and federal regulators need to ensure that the industry is taking all necessary precautions. To improve safety and mitigate risks, the report posits several suggestions.
Emphasizing “the necessity of sustained senior-level attention” to cybersecurity risks, the FSOC recommended the creation of a council of senior executives specifically focused on cybersecurity. This council could address ways that cyber incidents could impact business operations and market functioning, liaise with principal-level government counterparts on…
