Based on the results of the risk assessment,
a licensee shall do the following:
(1)Design its information security program to mitigate the
identified risks, commensurate with:
(A)the licensee's size and complexity;
(B)the nature and scope of the licensee's activities; and
(C)the sensitivity of the nonpublic information in the licensee's
control.
(2)Determine and implement appropriate security measures,
which may include the following:
(A)Placing access controls on information systems, including
controls to authenticate and permit only authorized individuals
to have access to nonpublic information.
(B)Identifying and managing the data, personnel, devices,
systems, and facilities that enable the licensee to achieve
business purposes in accordance with their relative importance
to busi
Free access — add to your briefcase to read the full text and ask questions with AI
Based on the results of the risk assessment,
a licensee shall do the following:
(1) Design its information security program to mitigate the
identified risks, commensurate with:
(A) the licensee's size and complexity;
(B) the nature and scope of the licensee's activities; and
(C) the sensitivity of the nonpublic information in the licensee's
control.
(2) Determine and implement appropriate security measures,
which may include the following:
(A) Placing access controls on information systems, including
controls to authenticate and permit only authorized individuals
to have access to nonpublic information.
(B) Identifying and managing the data, personnel, devices,
systems, and facilities that enable the licensee to achieve
business purposes in accordance with their relative importance
to business objectives and risk strategy.
(C) Restricting physical access to nonpublic information to
authorized individuals only.
(D) Protecting by encryption or other appropriate means all
nonpublic information while being transmitted over an external
network and all nonpublic information stored on a laptop
computer or other portable computing or storage device or
media.
(E) Adopting secure development practices for in-house
developed applications used by the licensee.
(F) Modifying information systems in accordance with the
licensee's information security program.
(G) Using effective controls, which may include multi-factor
authentication procedures for any employees accessing
nonpublic information.
(H) Regularly testing and monitoring systems and procedures
to detect actual and attempted attacks on, or intrusions into,
information systems.
(I) Including audit trails within the information security
program designed to detect and respond to a cybersecurity
event and designed to reconstruct material financial
transactions sufficient to support normal operations and
obligations of the licensee.
(J) Implementing measures to protect against destruction, loss,
or damage of nonpublic information due to environmental
hazards, such as fire and water damage or other catastrophes or
technological failures.
(K) Developing, implementing, and maintaining procedures for
the secure disposal of nonpublic information in any format.
(3) Include cybersecurity risks in the licensee's enterprise risk
management process.
(4) Stay informed regarding emerging threats or vulnerabilities.
(5) Use reasonable security measures when sharing information,
relative to the character of the sharing and the type of information
shared.
(6) Provide personnel with cybersecurity awareness training that
is updated as necessary to reflect risks identified in the risk
assessment.