Officially known as the “New York Department of Financial Services (NYS DFS) Cybersecurity Regulation,” is a set of regulatory standards for cybersecurity designed to protect the financial services industry and consumer data from cyber threats. It applies to all entities regulated by the New York Department of Financial Services (DFS), such as banks, insurance companies, and financial service firms.
Key aspects of NYS DFS Part 500 include:
- Cybersecurity Program: Organizations must establish a comprehensive cybersecurity program to protect the confidentiality, integrity, and availability of their information systems.
- Cybersecurity Policies: A written cybersecurity policy covering areas such as data governance, risk assessment, network security, data retention, and incident response is mandatory.
- Chief Information Security Officer (CISO): Organizations must appoint a CISO to oversee the cybersecurity program and policies, with responsibility for reporting to the board or senior executives.
- Risk Assessments: Entities must conduct periodic risk assessments to evaluate their cybersecurity posture and adapt their controls accordingly.
- Access Controls: Safeguards must be implemented to ensure that only authorized users have access to critical systems and sensitive data.
- Incident Response: A formal incident response plan must be in place to respond to cybersecurity events. Additionally, entities are required to notify the NYS DFS of certain cybersecurity events within 72 hours.
- Training and Monitoring: Continuous cybersecurity training for personnel and regular monitoring of systems to identify vulnerabilities or suspicious activities are essential parts of compliance.
- Third-Party Risk Management: Entities are required to manage and assess the cybersecurity risks posed by third-party service providers.
