BoI tells banks to appoint cyber officers

The Bank of Israel is troubled about the cyber threats to the banking system. Sources inform "Globes" that the Bank of Israel Banking Supervision Department, headed by Supervisor of Banks David Zaken, is demanding that each bank should establish a cybernetic protection unit and appoint a cybernetic defense officer to head it. The Bank of Israel recently distributed a draft circular to the banks dealing with "cybernetic risk management," demanding that the banks should address the problem specifically and allocate resources to counter cyber threats.

The banks are being required to appoint a senior employee with appropriate experience and know-how as cybernetic defense manager. "Even though the information security and information technology manager plays a significant role in coping with this risk, a special function is necessary to provide effective defense in this matter, which combines a range of spheres, including those not part of technology management, such as fraud detection, physical protection, personnel, compliance, etc. ," the document sent to the banks states. The document also indicates that the Supervisor of Banks is likely to allow the cybernetic defense officer to serve in the same role in the bank's subsidiaries, rather than require the subsidiary to appoint someone else to the position.

The Bank of Israel is not defining the employee's seniority, or whether he will have to part of management, for example. It hints, however, that they expect him to be considered a senior employee. "It is expected that the cybernetic defense officer will have the ability to express his opinion independently to the managers, and that the questions raised by him will receive the necessary attention, and will constitute a significant element in decision making," the Bank of Israel states.

The Bank of Israel is also seeking to increase the involvement of the board of directors and management in these matters. It wants the board to outline a defense strategy, monitor and supervise its implementation, and receive a report when a significant event takes place. Bank management is required to formulate a defense policy, monitor its effectiveness, and receive a periodic report and status report about threats and how to deal with them.

Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2014

BoI tells banks to appoint cyber officers

The Bank of Israel is demanding practical measures to deal with the cyber threat.