FFIEC Cancels E-Banking Handbook

E-Banking Booklet

On May 13, 2022, the FFIEC very quietly rescinded the FFIEC Information Technology Examination Handbook (IT Handbook) booklet entitled E-Banking.  The original booklet was released in 2003 and was accompanied by a flurry of activity by financial institutions to come up with a separate E-banking policy and risk assessment.  In effect, the FFIEC is now declaring (admitting?) that these are no longer necessary because all the basic risk management principles that apply to E-Banking are already addressed in other Handbooks.  Operational risk is addressed in the Business Continuity Management Handbook, information security risk is addressed in the Information Security Handbook, cyber risk is assessed in the Cybersecurity Assessment Tool, and third-party risk is addressed here, here, and here

We agree with this approach, and have long held that separately addressing each new emerging or evolving technology was cumbersome, duplicative, and unnecessary.  In our opinion, shifting the focus of the handbooks to basic risk management principles and best practices that can apply to all business processes makes more sense and is long overdue. Could the Wholesale and Retail Payment Systems handbooks be phased out next?  How about the Cybersecurity Assessment Tool?  Since cybersecurity is simply a subset of information security more broadly, could we see a phase-out of a separate cyber assessment?  Or even better, could we see the Information Security Handbook include a standardized risks and controls questionnaire that includes cyber?

Admittedly this is only one less policy and one less risk assessment, but we’ll be watching this trend with great interest. Anything that can help ease the burden on overworked compliance folks is a welcome change!

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