BSP to issue enhanced policy on banks' cyber security risk management

With risks to the financial system arising from technological developments, the Bangko Sentral ng Pilipinas (BSP) is set to release an enhanced set of guidelines for information technology (IT) risk management for all its supervised banks and other financial institutions.

"The BSP is enhancing its IT security framework to consider cyber security controls. There is a renewed focus on information security given technological developments, innovations, dynamic risk profiles, and actively evolving cyber landscape for which we supervise financial institutions," Espenilla said in a forum in Mandaluyong City.

"This regulation is going to be released by next month," the central bank chief added.

Pressed to disclose details, Espenilla told reporters that the new regulation will be an enhanced version of the BSP Circular 808, released in 2013.

"It is our fist and basic IT risk management framework," he said.

"So what's new? It will have enhanced explanations on cyber security risk management. It will have further use cases for cloud technology in banking implications. It will further strengthen governance responsibilities of bank works and management to make sure that their IT systems of their institutions are robust and resilient to cyber crime," Espenilla explained.

The central bank chief said that the banks and other financial institutions will not be having a hard time in meeting the requirements of the upcoming BSP IT risk management framework.

"I think, to be fair to the industry, there are a lot of investments by banks to level up their IT risk management,  Espenilla said.

"Banks today are less concerned of regulatory requirements than their own risks because even without regulation if you don't take care, a bank is vulnerable to cyber crime and you can lose money there much more than any penalty that the BSP can impose. On their own, the banks realize the need to upgrade their IT risk management," he said.

"To begin with, what we are putting up is mostly consulted with them so it's not really a surprise to them. That is something in their own because it's their own interest also," he added. —KG, GMA News