In an effort to strengthen cyber security resilience in the sector, the Central Bank of Nigeria (CBN) on Tuesday released a framework to protect Other Financial Institutions (OFIs) against cyber attacks.
This was contained in a memo by Nkiru Asiegbu, CBN’s Director, Other Financial Institutions Supervision Department, addressed to the OFIs.
Cyber security resilience is considered as an organization’s ability to maintain normal operations despite all cyber threats and potential risks in its environment.
Asiegbu said that the framework was necessitated by the number and sophistication of cybersecurity threats and attacks against the OFIs.
“Due to the recent increase in the number and sophistication of cyber security threats an attacks OFIs, it has become necessary and mandatory for the sub-sector to strengthen its cyber resilience if it is to remain safe and sound.
“Consequently, the CBN is releasing the draft framework and guidelines stipulating minimum requirements for enhancing cyber security,’’ she said.
She urged the OFIs to forward their input on the draft to the OFI supervision department of the apex bank.
The framework prescribes improved cybersecurity oversight by the board of the OFIs and strict implementation of board-approved of cyber-security policies by their management.
It also recommends the appointment of a Chief Information Security Officer (CISO), vested with the responsibility of day-to-day cybersecurity and mitigation of cyber-security risks in the OFIs, amongst other provisions
In view of this development, the apex bank stated that the platform on which information would be processed and transmitted should be managed in a way that ensures the confidentiality, integrity and availability of information as well as the avoidance of financial loss and reputational risk, amongst others.
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Considering the reliance of financial institutions on Information and Communications Technology (ICT) to operate their business and the rising incidences of cyber threats and attacks targeted at financial institutions, the CBN said it had become imperative to implement Cyber-Security measures to mitigate against those risks.
The apex bank stated, “Resilience provides an assurance of sustainability for the organization using its governance interconnected networks and culture.
“The purpose of the Guidelines is to create a safer and more secure cyber environment that supports information system security and promote stability of the OFI sub sector; contribute towards the prevention and combating of cybercrime in the OFI sub-sector; promote the adoption and implementation of best practices and appropriate Cyber-Security standards by OFIs.”
The framework will also assist in promoting and maintaining public trust and confidence in the OFI sub sector; promote a Cyber-Security culture and awareness through continuous capacity building and skills development.
The CBN stated that the board of directors shall ensure that Cyber-Security is completely integrated with business functions and as well managed across the OFI.
The board is also to have oversight and overall responsibility for Cyber-Security programmes.
In addition, senior management of OFIs would be responsible for the implementation of the board approved Cyber-Security strategy, policies, standards and the destination of Cyber-Security responsibilities among others.
The document also mandated every OFI to appoint or designate a CISO whose responsibilities shall include the day to day Cyber-Security activities and the mitigation of Cyber-Security risks in the institution.