The FSB wants to end the fragmented reporting of operational incidents such as cyber-attacks.
The Financial Stability Board (FSB) has released a common operational incident format intended to counter the fragmented requirements and coordination of such reporting, officials say.
Recently published for consultation, the new Format for Incident Reporting Exchange (FIRE) targets financial services firms that need to effectively report operational events such as cyber incidents, officials say.
FSB officials want “to promote convergence in reporting practices, to address operational challenges arising from reporting to multiple authorities, and to foster better communication within and across jurisdictions,” officials say.
Incident reporting is “a key mechanism for financial authorities to monitor disruptions within regulated entities. Currently, differences in reporting approaches across jurisdictions result in fragmented requirements and coordination challenges, which could exacerbate financial stability risks arising from operational incidents, including cyber incidents,” officials say. “Greater convergence between reporting frameworks will support financial institutions’ efficient incident response and recovery, as well as more effective supervision and cooperation among authorities.”
Developed in consultation with the private sector, the FSB is hoping FIRE is accepted by authorities and firms.
“Authorities can choose the extent to which they adopt FIRE, leveraging its features and definitions to promote convergence and facilitate translation between existing frameworks. Similarly, financial institutions can use FIRE both in their reporting to financial authorities and in their relationships with service providers,” according to the FSB.
“The consultation package consists of (i) a ‘human-readable’ format, (ii) a structured data model of FIRE using the reporting-language-agnostic Data Point Model method, and (iii) a taxonomy in eXtensible Business Reporting Language (XBRL) as a sample machine-readable version of FIRE,” FSB adds.
“Reducing fragmentation in incident reporting is critical in a globalized financial system where incidents can have cross-border implications. FIRE aims to increase convergence and facilitate communication within and across jurisdictions,” according to the FSB.
The FSB is inviting comments on the consultation package and responses should be submitted via an online form by Dec. 19, 2024. Responses will be published on the FSB’s website unless respondents expressly request otherwise on the online form, officials say.
For questions or to submit supplementary material, contact the FSB via fsb@fsb.org.
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