The U.S. Department of the Treasury, in collaboration with the Financial Services Sector Coordination Council (FSSCC), has officially released a comprehensive set of resources specifically designed for financial services institutions.
This initiative aims to enhance the security and efficiency of cloud adoption within the sector. Developed through a year-long collaboration between the Financial and Banking Information Infrastructure Commission (FBIIC) and the Cybersecurity Committee, the guidelines represent a major step forward in cybersecurity and operational resilience.
A central component of this initiative is the creation of the Cloud Executive Steering Group (CESG) by Treasury in May 2023, based on guidance from the Financial Stability Oversight Council (FSOC).
The group’s primary mission is to fill critical gaps highlighted in a major Treasury report on cloud adoption strategies in the industry. The published documents provide a wealth of knowledge on best practices for cloud adoption and operations, with the goal of providing financial institutions of all sizes with the tools they need to securely transform their digital lives.
Newly published resources address several important areas:
Establishing a global glossary to simplify discussions between financial institutions and regulators about cloud computing technology. Improved strategies for information sharing and coordinated screening of cloud providers. Reviewing current supervisory capabilities in relation to the supervision of cloud providers. Formulating best practices for managing third-party risks, particularly those associated with cloud providers and outsourcing projects. A detailed roadmap for financial institutions considering full or hybrid cloud adoption, along with an updated cloud profile for the financial sector. Strategies for improving transparency and proactive oversight of cloud computing services, and ensuring strong security by design.
Deputy Treasury Secretary Wally Adeyemo said the completion of the project “represents the culmination of nearly two years of collaboration to further protect our financial system.” He hailed the Cybersecurity Hub as a new and effective model for addressing key cybersecurity challenges within the sector.
Furthermore, Consumer Financial Protection Bureau Director Rohit Chopra and Acting Comptroller of the Currency Michael J. Hsu echoed the sentiment, emphasizing the critical nature of the financial system’s infrastructure and the importance of protecting it from disruptions caused by financial service providers.
PNC Financial Services Group Chairman and CEO Bill Demchak emphasized the value of strong public-private sector collaboration, which he believes is essential to achieving a more comprehensive approach to defending against advanced threats.
The Financial Services and Cloud Committee supports these efforts through several areas of work, including the Cloud 2.0 Profile and the Financial Sector Cloud Outsourcing Issues and Considerations document, which helps identify best practices and key considerations for contractual agreements with communications service providers.
These initiatives not only set the future path for secure cloud adoption, but also create a framework for ongoing public-private partnerships aimed at enhancing the resilience and security of the financial sector.
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