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Legal Alert - Federal Regulators Plan Cybersecurity Assessments for Certain Banks

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by Richard H. Herold

Federal regulators have substantially elevated cybersecurity risk assessments as yet another monitoring tool. They now view risk assessments not just as relevant to mundane IT issues but as more fundamental for assessing operational risk relevant to the safety and soundness of the entire banking institution. Indeed, in a May 7, 2014 speech, Thomas J. Curry, the Comptroller of the Currency, noted “that some of the most significant losses banks have sustained in the last several years were attributable not to the loans they made but rather to lapses in operational risk management and the ensuing legal judgments, regulatory fines and reputational damage.”

[Read the full alert.]