New York Proposes Bigger Cyber Role for Bank, Insurer Boards

Boards of directors at financial institutions would have to step up their oversight of cybersecurity risks under proposed updates to regulations from New York state’s Department of Financial Services.

The proposal would require board approval of cyber policies at banks, insurers, and other financial institutions meeting a certain size threshold laid out by the regulator. Companies would have to disclose whether their directors have expertise to oversee security risks or they rely on outside cyber consultants.

A public comment period for the proposed amendments, published July 29, is open for feedback before finalization. They would update New York’s first-of-their-kind ...