‘Cyber Challenge’ beefed up with two cybersecurity vignettes

Two new cybersecurity vignettes consisting of exercises encouraging discussions of operational risk issues and the potential impact of information technology disruptions on common banking functions have been included in the Cyber Challenge hosted by the Federal Deposit Insurance Corp. (FDIC), the agency said Friday.

The Cyber Challenge, aimed largely at community banks (and part of the agency’s Community Banking Initiative), is intended to facilitate discussion between financial institution management and staff about operational risk issues, the agency said in a Financial Institution Letter (FIL-63-2018).

“Community financial institutions may be exposed to operational risks through internal or external events ranging from cyber attacks to natural disasters,” the letter states. “Operational risks can threaten an institution’s ability to conduct basic business operations, impact its customer service, and tarnish its reputation.”

The agency said the Challenge is not a regulatory requirement but an optional resource to assist financial institutions in strengthening resilience to operational risk.

According to the FIL, the Cyber Challenge now consists of:

  • Nine scenarios presented through short video vignettes;
  • Associated challenge questions;
  • Reference materials; and
  • An instructional guide.

FDIC FIL-63-2018: Cybersecurity Preparedness Resource