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FRM Part II · FRM Exam Part II · Digital Resilience and Financial Stability: The Quest for Policy Tools in the Financial Sector

A regional bank's security team detects a new malware strain and wants to share indicators of compromise with peer institutions. Its legal team worries about liability and competitive disadvantage. Which approach best supports the policy objective of improving sector-wide digital resilience?

The best approach is sharing indicators through a trusted sector-level platform with legal safe harbours and anonymisation. This lowers liability and reputational fears, encourages participation, and gives peers timely warning, whereas withholding or publicly naming victims discourages sharing and weakens sector-wide resilience.

  1. AShare indicators only through a trusted sector-level platform with legal safe harbours and anonymisation optionsCorrect
  2. BKeep the indicators internal until the incident is fully remediated and audited
  3. CShare the indicators only with the bank's largest competitor to reduce duplication
  4. DShare the indicators publicly with full victim identification to maximise deterrence

Explanation

Information sharing works best when trusted channels reduce fear of liability and reputational harm, such as safe harbours and anonymisation. Holding data back until remediation loses the early-warning value for peers. Public naming discourages participation.

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