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CSBS releases nonbank cybersecurity examination tools

Privacy, Cyber Risk & Data Security State Issues CSBS Nonbank Examination

Privacy, Cyber Risk & Data Security

On August 9, the Conference of State Bank Supervisors (CSBS) released two new tools used by state examiners to assess nonbank financial services companies’ cyber preparedness. Developed by a multi-state team of cybersecurity examination experts, the Baseline Nonbank Cybersecurity Exam Program and the Enhanced Nonbank Cybersecurity Exam Program provide nonbanks the opportunity to improve their cybersecurity posture and better prepare for cybersecurity exams conducted by state examiners. The “Baseline” program is geared toward exams of “smaller, noncomplex, low-risk institutions,” and “is targeted for use by examiners with or without specialized IT and cybersecurity knowledge.” The “Enhanced” program includes all of the Baseline procedures as well as additional procedures to provide a “more in-depth review for larger, more complex institutions or for those where concerns are raised during exams.” The program is intended for use by examiners with specialized IT and cybersecurity knowledge.

“Supervisory clarity is essential to increasing industry awareness and making our financial system more resilient to cyber-attacks,” CSBS Senior Vice President of Nonbank Supervision Chuck Cross said in the announcement. “The Nonbank Cybersecurity Exam Procedures released today provide nonbank institutions additional optional tools to guard against cyber-attacks, data breaches or lapses in management oversight in this crucial area.” 

CSBS announced that it intends to provide additional tools tailored to the needs of smaller nonbank financial institutions in the coming months. 

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