FDIC Official Discusses Implementation of FFIEC Authentication Guidance
In an interview with Information Security Media Group, William Henley, Associate Director of the Federal Deposit Insurance Corporation’s (FDIC) Technology Supervision Branch, discussed the status of the banking industry’s implementation of FFIEC authentication guidance released in July 2011. Henley generally said that the industry was working towards compliance and offered that FDIC examiners at this stage were looking for good faith efforts to comply: “What the examiners were looking for were reasonable, good faith efforts that an institution was working toward compliance….If any institution was working toward a compliance plan, that's all they needed to do.”
He also described the federal banking agencies’ move away from “controls-based oversight” to “governance-based oversight.” The agencies do not want to be in the position of constantly reacting to the newest form of technology through the issuance of internal controls guidance tailored to the technology. Instead, the agencies would prefer to address emerging technology risks through requirements relating to robust risk management, board oversight, and broader risk mitigation strategies that can address any form of emerging technology.
The federal banking agencies have prioritized information security highly. We will continue to monitor and report on developments.