Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, April 10, 2018

FFIEC outlines role of cyber insurance in risk management programs

By Andrew A. Turner, J.D.

Seeking to aid financial institutions in considering the use of cyber insurance as a component of their risk management programs, the Federal Financial Institutions Examination Council has provided a list of management considerations to help assess benefits and costs. The FFIEC joint statement says these may include:

  • involving multiple stakeholders in the cyber insurance decision;
  • performing proper due diligence to understand available cyber insurance coverage; and
  • evaluating cyber insurance in the annual insurance review and budgeting process.

Although the FFIEC members do not require financial institutions to maintain cyber insurance, increasing threats and an evolving cyber insurance marketplace may prompt financial institutions to consider cyber insurance as part of their risk management programs. Cyber insurance could offset financial losses from data breaches that may not be covered by more traditional insurance policies.

If management is considering cyber insurance, the FFIEC says an informed risk management decision requires a review of scope of coverage to identify gaps and costs for cyber events. Cyber insurance should be viewed as "a component of a broader risk management strategy that includes identifying, measuring, mitigating, and monitoring cyber risk exposure," according to the FFIEC.

MainStory: TopStory BankingOperations CyberPrivacyFeed FederalReserveSystem FinancialStability IdentityTheft Privacy

Back to Top

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.