An Introduction to Understanding FFIEC Rules

Regulatory necessities are a key operational concern that we hear about from our monetary clients. As a key supplier of know-how for mission-critical monetary system infrastructures throughout the globe, Cisco is held to the very best ranges of scrutiny within the monetary companies regulatory audit chain. We’ve got helped clients navigate the advanced necessities and panorama to assist hold them protected, when 100% of their enterprise, depends on our gear within the worth chain.

A key problem is managing iterations of infrastructure in international monetary enterprises which have spanned 50+ years of digitization. These methods are regularly being up to date with newer and higher ones; nonetheless, it takes a very long time to sundown the legacy know-how.  This results in many generations of put in know-how units with various {hardware} and software program methods, all that must be tracked and managed, secured, and audited. Common exterior examination is a needed problem to make sure hygiene of those methods are maintained amidst a backdrop of accelerating cyber threat.

Streamlining the IT audit course of

The Federal Monetary Establishments Examination Council—or higher often called the FFIEC—is a proper U.S. authorities interagency physique charged with serving to streamline the audit course of. Quite a lot of our monetary establishment clients are regulated by a number of, and completely different, regulatory our bodies. Within the U.S. a number of companies embody the Federal Reserve (FRB), the Federal Deposit Insurance coverage Company (FDIC), the Nationwide Credit score Union Administration (NCUA), the Workplace of the Comptroller (OCC), and the Shopper Monetary Safety Bureau (CFPB). With out consistency, if each company had their very own examination standards for evaluation it will be exceptionally troublesome for monetary establishments to get work carried out.

To assist streamline audit, the FFIEC as an interagency physique, creates uniform ideas, requirements, and report varieties for federal examinations of monetary establishments. Having a constant set of audit standards and varieties, a monetary establishment can have one audit that satisfies quite a few federal regulatory companies and retains it a degree regulatory taking part in area. The FFIEC’s scope is far broader than merely the IT points of digital financials, because it consists of credit score markets, fraud, BSA/AML, liquidity, and different areas of curiosity for regulatory our bodies.

IT Governance in Monetary Companies

Over the following few weeks and months we’ll be contributing blogs that may concentrate on the FFIEC’s necessities within the data know-how house, masking the under distinct areas:

• The Cybersecurity Maturity Evaluation and learn how to use it
• The 2021 Updates within the Structure, Infrastructure, and Operations ebook
  • {Hardware} and Software program Lifecycles
  • Widespread Threat Administration Matters: Structure, Knowledge, IT
  • Infrastructure Administration
  • Operations and Operational Processes
• Cisco instruments that may fulfill regulatory governance necessities

The purpose for this sequence of blogs is to assist the IT groups of monetary establishments concentrate on the regulatory ideas handled additional upstream in a corporation, and to advertise instruments that simplify the hardening of methods and streamlining audits.

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