WAM, Wednesday, Nov 29, 2023 | Jumada Al-Uola 15, 1445
ADGM FSRA publishes Discussion Paper on IT Risk Management
ABU DHABI,
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global
Market (ADGM) has issued a Discussion Paper on information technology (IT)
risk management to engage with and seek feedback from industry stakeholders.
The FSRA considers IT risk management a key part of firms’ overall business
risk management. In this respect, the FSRA has issued regulations and rules
relating to IT risk management and controls for specific IT domains or
regulated activities that rely heavily on IT.
Those regulations and rules underline the standards required of authorised
firms in maintaining a robust and resilient IT environment as an inherent
part of their business activities.
The Discussion Paper outlines the following initiatives the FSRA is building
on to enhance its supervisory and regulatory regime over IT risk management:
a) Introducing comprehensive and holistic IT Risk Management Guidance that
consolidates best practices across a range of IT domains, including guidance
for adopting algorithm-driven and decentralised infrastructure solutions.
b) Review existing IT risk management rules to incorporate requirements that
would strengthen firms’ practices.
c) Requiring firms to report material IT incidents to the FSRA in a
standardised format within a prescribed timeframe.
d) Making regulatory technologies (RegTech) available to firms to navigate
the FSRA’s rules and guidance relating to IT risk management.
Emmanuel Givanakis, CEO of the ADGM FSRA, said, “While technological
advances enable financial services firms to innovate and deliver enhanced
value to customers and investors, IT risks are also growing in their scale
and complexity. It is, therefore, imperative for the FSRA to continue
updating and enhancing our regulatory framework on IT risk management to
support innovation and growth. We look forward to collaborating with the
industry to further develop capabilities that will make IT risk management a
competitive advantage for our firms and contribute to a more resilient
ecosystem in the ADGM.”