Fed official urges flexible approach to cybersecurity for financial utilities

7 December 2018 11:23pm
National and global regulators should avoid rigid approaches to cybersecurity for financial market utilities such as CME Group, CHIPS and Depository Trust, a senior official with the US Federal Reserve Bank of New York said.

“I will state my fear plainly: beware the risk management industrial complex,” Richard Dzina, executive vice president of the New York Fed’s financial services group, said in a speech* to bankers posted today.

“Let us be sure not to construct an inflexible Maginot line whose rigidities are easily subverted by a creative and nimble adversary. Compliance across this waterfront has become a consuming pre-occupation”.

Dzina called instead for “autonomy and discretion” to be granted to local management to develop a “tailored” approach that balances a particular firm’s needs with accountability.

*2018 Annual Conference. The Clearing House and Bank Policy Institute. New York. Nov. 26, 2018.