Abu Dhabi Global Market Issues Comprehensive IT Risk Management Guidelines for the Financial Sector
The Financial Services Regulatory Authority (FSRA), the entity responsible for overseeing financial services within the Abu Dhabi Global Market (ADGM), has announced the release of its IT Risk Management Guidelines. These guidelines aim to provide a comprehensive framework for managing IT risks in the financial sector operating within ADGM.
Comprehensive Risk Management Framework
The guidelines were developed following an in-depth study and active engagement with stakeholders. In February 2024, FSRA issued a discussion paper on IT risk management, followed by an industry briefing session. The feedback received played a pivotal role in shaping the final guidelines.
Key Sections of the Guidelines
The guidelines are divided into four main sections, outlining best practices for IT risk management:
- IT Risk Culture:
- Focuses on governance and implementation of risk controls.
- Covers incident management, auditing, and managing relationships with external technology service providers.
- IT Environment Management:
- Encompasses technology asset management, infrastructure, system lifecycle, and resilience to cyber incidents.
- Secure Technology Transactions:
- Addresses system access controls, cryptographic key management, and ensuring secure electronic transactions.
- Emerging Technologies:
- Includes generative AI and decentralized infrastructure solutions such as virtual asset platforms.
International Alignment and Gradual Implementation
The guidelines align with international standards set by global regulatory bodies and recommend that regulated entities implement them based on their size and operational complexity.
Enhancing Security and Innovation
Emmanuel Givanakis, CEO of FSRA, stated:
“As technology continues to reshape the financial services landscape, IT risk management becomes vital. These guidelines reinforce our focus on cybersecurity and support innovation in digital finance. They provide practical guidance for executives and compliance officers to enhance their risk management systems.”
Commitment to a Resilient and Advanced Financial Hub
This initiative reflects ADGM’s commitment to building a strong international financial center that balances security and innovation. It supports the development of a resilient business environment aligned with technological advancements in Abu Dhabi.