The Cybersecurity Guide to Governance, Risk, and Compliance

CHAPTER 14The FFIEC: An Introduction

“The FFIEC Examination Handbooks serve as invaluable guides, illuminating the path toward effective risk management and comprehensive cybersecurity practices, empowering organizations to navigate the ever‐evolving threat landscape.”

This chapter explores the Federal Financial Institutions Examination Council (FFIEC), a crucial organization in financial cybersecurity. We delve into its historical background and significance, understand its key roles and responsibilities, and demystify the FFIEC Examination Handbooks. The chapter concludes with an overview of the FFIEC Cybersecurity Assessment Tool (CAT), illustrating its purpose, components, and how it can be effectively integrated into an organization's cybersecurity program.

FFIEC HISTORY AND BACKGROUND

The establishment of the FFIEC in 1979 was a landmark event in the history of financial regulation in the United States. The FFIEC was formed due to the Financial Institutions Regulatory and Interest Rate Control Act of 1978, a federal law enacted to promote consistent and coordinated standards among financial institutions. The creation of the FFIEC signified a significant shift toward a more streamlined and cohesive approach to regulating the financial sector, addressing the need for uniform standards, regulatory practices, and oversight among the diverse entities within the industry.

The primary objectives of the FFIEC were well defined from the onset. Its mandate was clear – to promote ...