Wednesday, December 7, 2022
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Editor's PickSC proposes tech risk management framework

SC proposes tech risk management framework

The Securities Commission Malaysia (SC) is seeking the public’s feedback on a proposed regulatory framework relating to the management of technology risks by capital market entities.

The framework aims to boost capital market entities’ ability and effectiveness in detecting and addressing an increasing range of technology risks due to the prevalent use of technology, emergence of new technologies and the growing sophistication of cyber threats.

The proposed framework essentially covers governance requirements and requirements on technology risks management, technology operations, technology outsourcing, cyber security and data management as well as principles relating to the adoption of artificial intelligence (AI) and machine learning (ML).

“The Malaysian capital market’s technology landscape has progressed rapidly in recent years and embracing technology is critical for an inclusive and efficient capital market. While technology is a key enabler, its widespread use and rapid adoption can pose risks in many different areas if not properly managed,” the SC said.

This proposed framework, in line with the regulator’s Capital Market Masterplan 3, is expected to subsume the current requirements in the SC’s 2016 cyber risk guidelines, consolidate other requirements relating to technology risks management in the various guidelines issued by the SC as well as introduce new requirements.

The SC is collecting feedback on the consultation paper until the 19th September 2022.

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