FRM Part II · FRM Exam Part II · Digital Resilience and Financial Stability: The Quest for Policy Tools in the Financial Sector
A bank participates in an information-sharing group but its legal team worries about liability and confidentiality of shared data. Which design element best reduces these barriers while preserving the benefit of sharing?
Clear legal safe harbors combined with agreed protocols for handling and anonymizing shared information best reduce barriers. They ease liability and confidentiality fears and build trust, so firms share useful threat data more readily, unlike blanket public disclosure, prohibition, or penalty-driven approaches.
- AClear legal safe harbors and agreed protocols for handling and anonymizing shared informationCorrect
- BMandating that all shared data be published publicly
- CProhibiting sharing of any incident details with other firms
- DSharing only after the regulator imposes a penalty
Explanation
Legal safe harbors and clear data-handling and anonymization protocols address liability and confidentiality worries, building trust so firms share more and sooner. Public disclosure of everything would heighten confidentiality and attacker-intelligence concerns, and prohibiting sharing defeats the purpose. Waiting for penalties is reactive and discourages openness.
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