II.D Risk Monitoring and Reporting

Risk monitoring is a process by which the institution tracks information about its inherent risk profile and identifies gaps in the effectiveness of risk mitigation activities. Risk monitoring should address changing threat conditions in both the institution and the greater financial industry. Threats change frequently, particularly in terms of the threat's capabilities and intentions, as well as the vulnerabilities they may exploit. Vulnerabilities in software are continually announced, and other vulnerabilities may emerge as the institution's systems are modified or updated. External requirements, including the use of new third-party service providers, also may change the institution's inherent risk profile.

Risk reporting is a process that produces information systems reports that address threats, capabilities, vulnerabilities, and inherent risk changes. Risk reporting should describe any information security events that the institution faces and the effectiveness of management's response and resilience to those events. The reporting process should provide a method of disseminating those reports to appropriate members of management. The contents of the reports should prompt action, if necessary, in a timely manner to maintain appropriate levels of risk.

 

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