The Federal Reserve today invited comment on proposed updates to operational risk management requirements for certain systemically important financial market utilities it supervises.
The Fed said that broad operational risk, technology and regulatory landscape in which FMUs operate has “evolved significantly” since risk management requirements were last updated in 2014. New challenges have emerged—such as the global pandemic and cyber events—while new technological advancements may improve resilience, the Fed said, adding that the proposed updates would provide “more specificity to the existing requirements.”
The updates address four key areas: incident management and notification; business continuity management and planning; third-party risk management; and review and testing of operational risk management measures.
