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NBU instructs banks to strengthen information security risk management, create 'trading desk'
KYIV. April 4 (Interfax-Ukraine) – The National Bank of Ukraine (NBU), taking into account the updated norms of EU legislation and the requirements of the law “On the Basic Principles of Ensuring Cyber Security in Ukraine,” updated approaches to risk management in banks and banking groups, as well as to determine the minimum size of market risk, the regulator said on its website.
“The changes provide for: separation of information and communication technologies and information security risks in the architecture of operational risk (with the separation of cyber risk in it), as well as the introduction of a definition of these risks,” the National Bank said.
In addition, the NBU has improved the requirements for managing market risk, in particular, instructed to create a “trading desk” for managing trading book instruments, and also specified the criteria for classifying instruments as trading and banking books.
Among other changes, the introduction of a requirement to determine measures related to the termination of money and foreign exchange market indicators; inclusion of information on open proceedings in cases involving a bank or its manager or owner of a significant participation in risk management reports.
The deadline for finalizing intra-bank/intra-group risk management papers, taking into account these changes, is October 1, 2023.
In addition, the terms of the introduction by banks of the calculation of the minimum size of market risk has been specified. In particular, banks shall ensure the development of intra-bank regulations for calculating the minimum size of market risk before October 1, the implementation of test calculations and the provision of information on its results to the National Bank – during November-December 2023.
According to the updated requirements, banks shall start calculating the minimum size of market risk from December 29, 2023 (as of January 1, 2024).
The NBU said that the amendments to the Regulations on the organization of the risk management system in Ukrainian banks and banking groups and the Regulations on the procedure for determining the minimum size of market risk by Ukrainian banks were approved by NBU Board Resolution No. 40 dated March 30, 2023, which entered into force on April 4.
