The New York Cybersecurity regulation – 23 NYCRR 500 – requires financial institutions to minimize their cyber security risk by formulating a full security risk assessment and plan. Matan Or-El, CEO at Panorays commented below.
Matan Or-El, CEO at Panorays:
“GDPR mandates that the suppliers of a company must be GDPR-ready in order for the company to be GDPR-ready. Contrary to GDPR, the NY DFS provision in regards to third parties, requires that organizations need to evaluate the risk posed to them by the third parties. However, it does not go that far by requiring the third parties to be compliant with NY DFS. Scaling is a huge concern and may seem unattainable to the financial institutions. After all, a financial institution has thousands of suppliers that they will need to evaluate – as well as need to hold to a minimum security standard – in order to reach the March 1, 2019 deadline. To arrive at that date in compliance, they must ensure that their process, or technology used, can easily, quickly and accurately manage the evaluation of the third parties regardless of their number. In order to properly evaluate the risk, the financial institutions need to not only have visibility into their suppliers, but also have context around the business and technology relationship between themselves and their suppliers.