World Council supports creation of ‘cyber lexicon’
The World Council of Credit Unions supports the Financial Stability Board’s initiative to develop a “cyber lexicon” but urges the board to take a proportional approach that does not impose additional compliance burdens on credit unions and other community-based financial institutions. The World Council submitted its letter in response to a consultative document from FSB on developing a cyber lexicon to address cybersecurity and cyber resilience in the financial sector.
The FSB is a international body that monitors and makes recommendations about the global financial system. It published the Cyber Lexicon document July 2.
“Some cybersecurity measures that may be affordable for large, internationally active banks may not be affordable for depository institutions with smaller economies of scale, especially those with less than EUR 10 billion in assets,” the letter reads. “We urge the FSB to establish a principles-based approach to cybersecurity that is proportional to an institution’s cyber risks and asset size.”
According to FSB, the Cyber Lexicon is intended to support the work of FSB, standard-setting bodies, authorities and private sector participants such as financial institutions.
It believes a lexicon could be useful to support work in the following areas:
- Cross-sector common understanding of relevant cyber security and cyber resilience terminology;
- Work to assess and monitor financial stability risks of cyber risk scenarios;
- Information sharing as appropriate; and
- Work by the FSB and/or standard-setting bodies to provide guidance related to cyber security and cyber resilience, including identifying effective practices.
The lexicon was developed in response to a request from G20 Finance Ministers and Central Bank Governors at their October 2017 meeting.