Risk & Resilience

The Federal Reserve's recently released 2023 Annual Report provides a comprehensive overview of the central bank's intensified supervisory efforts and its approach to addressing evolving risks in the banking sector. The report details a year marked by significant developments in supervision and regulation, reflecting the Fed's response to recent banking challenges and its forward-looking risk management strategies.

The Massachusetts Institute of Technology (MIT) has introduced a new resource on artificial intelligence. This new AI Risk Repository, which features over 700 meticulously cataloged entries, represents a significant advancement in the consolidation and comprehension of the multifaceted risks associated with AI deployment.

When it comes to operational resilience and continuity, as well as broader GRC, many options for solutions are available in the market. Selecting the right solution is critical, as many choices lead organizations down the road of complexity and cost—not just in implementation, but also in ongoing maintenance, management, and user experience. Organizations need operational resilience and continuity solutions that are highly resilient, efficient (in both human and financial capital), effective, integrous, accountable, and agile to the needs of dynamic and distributed businesses.

A recent ransomware attack has forced the temporary shutdown of payment systems across nearly 300 small Indian local banks, according to two sources familiar with the situation. The attack targeted C-Edge Technologies, a provider of banking technology systems to small banks throughout India.

The European Supervisory Authorities (ESAs) - comprising the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority - have unveiled their second batch of policy products under the Digital Operational Resilience Act (DORA) on July 26, 2024. This extensive package, aimed at bolstering the digital operational resilience of the EU's financial sector, includes four final draft Regulatory Technical Standards (RTS), one set of Implementing Technical Standards (ITS), and two guidelines.

The European Central Bank (ECB) is crafting a new framework to evaluate the impact of geopolitical risks on banks, informed by the lessons learned from the sanctions on Russia, which have disrupted operations for several euro zone lenders. This development was announced by Claudia Buch, the ECB's top banking supervisor, during an online event hosted by the Petersen Institute for International Economics.

A global technology outage caused by a faulty software update grounded flights, knocked media outlets offline, and disrupted hospitals, small businesses, and government offices on Friday. This incident highlighted the fragility of a digitized world dependent on a few key providers. At the heart of the massive disruption was CrowdStrike, a cybersecurity firm that provides software to thousands of companies worldwide.