hotographer: Simon Dawson/Bloomberg

New York Fed Forms Team Focused on Cybersecurity Threats

The Federal Reserve Bank of New York has formed a team dedicated to cybersecurity threats, according to the bank’s top regulator.

“We have elevated our efforts in recent months and have formed a dedicated team focused on further strengthening our overall supervisory approach to cybersecurity,” Sarah Dahlgren, the New York Fed’s head of supervision, said in prepared remarks delivered to a conference in New York today.

The team is led by Roy Thetford, the former information security officer for the bank. He’ll “be working with our examination teams to establish a new risk-based cybersecurity assessment framework, based on best practices in the field, as well as exploring additional standards that might be set out for supervised institutions,” she said.

In her speech, Dahlgren called cybersecurity the biggest threat to financial stability that keeps her “awake at night,” saying it would command a lot of attention in the foreseeable future.

“Suffice it to say that as I think about the kinds of risks that might cause the next crisis, cybersecurity is the one that worries me the most,” she said. “While we have begun to address other areas of systemic risk, I feel the industry as a whole is just beginning to scratch the surface of the potential system-wide impact of a significant cyber-attack.”

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