In a significant shift for the financial sector, the Federal Financial Institutions Examination Council (FFIEC) has announced it will be sunsetting the Cyber Self-Assessment Tool (CAT). This decision impacts many banks and financial institutions that have relied on CAT for their annual cyber risk assessments. Completing the self-assessment tool enables institutions to evaluate their performance and identify areas for improvement.
Overview of the FFIEC Cyber Self-Assessment Tool
The FFIEC Cyber Self-Assessment Tool has been a cornerstone for financial institutions aiming to bolster their cybersecurity defenses. Launched to provide a structured approach, this digital instrument helps banks and other financial entities evaluate their cybersecurity posture comprehensively. By using this self-assessment tool, institutions can identify vulnerabilities and determine their overall cybersecurity maturity level. The tool’s framework guides users through a detailed assessment process, enabling them to create a personalized action plan to address any identified gaps and weaknesses. This proactive approach not only enhances cybersecurity resilience but also ensures that institutions are better prepared to face evolving cyber threats.
What Does This Mean?
The Cyber Self-Assessment Tool, launched in 2015, has been a vital resource for institutions to gauge their cybersecurity preparedness and identify vulnerabilities. Its phased-out status means banks will need to find alternative methods to assess their cyber risk profiles and set goals for improvement.
Why the Change?
The FFIEC’s move to sunset CAT reflects a broader evolution in the regulatory landscape and cybersecurity practices. The financial industry is seeing rapid changes in technology and threat landscapes, which necessitates more dynamic and comprehensive assessment tools. While CAT has served its purpose, the FFIEC believes that more advanced and adaptable solutions are required to address today’s complex cyber threats and help institutions identify and evaluate their cybersecurity skills.
Timeline for the Sunset of the FFIEC Cyber Self-Assessment Tool
The FFIEC has set a clear timeline for the sunset of the Cyber Self-Assessment Tool, with the phase-out scheduled to be completed by August 31, 2025. This decision is part of the FFIEC’s broader initiative to update and refine its cybersecurity guidance, ensuring that financial institutions are equipped with the most current and effective tools. Institutions are encouraged to begin transitioning to alternative self-assessment tools and methodologies well before the sunset date. A phased implementation approach is recommended, allowing institutions to gradually integrate new tools and processes into their existing cybersecurity frameworks. This methodical transition will help ensure continued compliance with regulatory requirements and maintain robust cybersecurity defenses.
Next Steps for Banks
- Explore Alternatives: Banks should begin evaluating alternative tools and frameworks for cyber risk assessment. Options include more sophisticated commercial solutions or developing in-house assessments tailored to their specific needs. Additionally, banks should identify areas where they need more help to ensure comprehensive coverage and effectiveness.
- Stay Informed: It’s crucial for institutions to stay updated on any guidance or recommendations from the FFIEC or other regulatory bodies regarding new assessment methodologies.
- Review Cybersecurity Strategies: Use this transition as an opportunity to review and strengthen your overall cybersecurity strategy. This includes reassessing risk management practices and ensuring alignment with the latest industry standards.
How Hartman Can Help
The sunsetting of the FFIEC’s Cyber Self-Assessment Tool marks a pivotal moment for banks. While it may bring challenges, it also presents an opportunity to to adopt a more streamlined and practical risk assessment.
Hartman Executive Advisors can help you navigate this transition and strengthen your cybersecurity defenses. Contact Hartman today to take advantage of a special offer on our NIST Cybersecurity Framework assessment and risk register services.We can help you transition away from the CAT without losing sight of any of the risks or priorities you’d previously identified.
