In some ways, this perspective is not new territory for bank regulators. The Federal Reserve, for example, issued supervisory guidance in 1995 that identified the six primary risks that remain the focus of its supervisory program, and reputational risk is among them.5 Having  4  The reasons for ineffective supervision can be explored separately; they are beyond the scope of my remarks today.
Given the instances of cyber fraud in banks recently, it is necessary to improve controls and examine  6  BIS central bankers’ speeches  the need for pro-active fraud risk assessments and management processes in commercial banks. Banks must also work towards ensuring dissemination of the IT security policy and procedures and related parameters amongst all operative functionaries of banks.