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

During a severe cyber incident affecting a payment service provider used by many banks, authorities in several jurisdictions need to respond. Which feature of a crisis coordination framework would most reduce the risk of conflicting actions and delayed decisions?

Pre-agreed communication protocols, defined roles and cross-border contact points, validated through joint exercises, best reduce conflicting actions and delay. They let authorities act quickly and consistently during an incident, unlike ad hoc coordination or waiting for root-cause confirmation.

1. AAllowing each authority to set its own incident notification format and timing
2. BPre-agreed communication protocols, defined roles and cross-border contact points, tested through joint exercisesCorrect
3. CRelying on firms to coordinate informally among themselves after the event
4. DDelaying regulatory communication until the root cause is confirmed