The Federal Reserve Board is seeking comments regarding operational risk-management update requirements for certain systemically important financial market utilities (FMUs) under the panel’s supervision.
“In light of the rapidly evolving risk landscape, the proposed changes will help ensure that key financial market utilities operate with a high level of resilience and remain a source of strength for the financial system,” Federal Reserve Board Vice Chair Lael Brainard said.
The Fed noted FMUs provide infrastructure to clear and settle payments and other financial transactions upon which the financial markets and the broader economy rely to function effectively, adding the proposed updates provide greater specificity to the existing requirements.
Areas to be addressed within the proposed updates, according to the Federal Reserve Board, are incident management and notification; business continuity management and planning; third-party risk management; and review and testing of operational risk management measures.
According to the Federal Reserve Board, with the framework of the proposed updates, FMUs would be required to establish an incident management structure while emphasizing the need to continue to advance cyber resilience capabilities.
Comments on the proposed changes must be submitted within 60 days from the date of publication in the Federal Register, according to the Federal Reserve Board.