The European Banking Authority (EBA) on Thursday issued draft guidelines that aim to promote common procedures and methodologies for regulators when it comes to evaluating technology risk.
The EBA is developing the guidelines to address the “growing importance and increasing complexity” of technology risk within the banking industry overall, and at individual institutions, the regulator says in a news release.
The guidelines also point to the increasing potential damage that this risk poses to both particular banks, and the sector as a whole.
The draft guidelines build on existing references to technology risk in the EBA’s supervisory guidelines. Among other things, they aims to address: what regulators should expect to see from banks in managing these risks; how this aligns with banks’ business strategies, and how to asses risk exposures and the effectiveness of internal controls.
The EBA is planning a public hearing on the issue on Nov. 22. Comments on the consultation are due by Jan. 6, 2017.