The Financial Stability Board (FSB) has published a series of reports on supervisory and regulatory approaches to climate-related risks, and a consultative document on cyber incident reporting.
In their consultative document on ‘Achieving Greater Convergence in Cyber Incident Reporting’, the board’s proposals around cyber incidents include both practical and structural changes. For the former, it has listed 16 recommendations to address the risks of data collection and sharing in the reporting process.
Looking towards structural changes, the FSB suggests that a shared terminology around cyber incidents is established, to prevent confusion and over-reporting of non-meaningful events. Additionally, a universal format for incident reporting exchange should be developed, the board says.
The board has also released their final report on ‘Supervisory and Regulatory Approaches to Climate-related Risks’. As outlined in its roadmap for addressing climate-related financial risks, released in 2021, the FSB has recommended that regulators should identify the data that they will require from firms as soon as possible, and offer them support as they work on standardising reporting requirements.
The board also advises that authorities must engage in near- and medium-term research to develop their regulatory and supervisory frameworks, in addition to increasing their use of climate scenario analysis and stress tests for macroprudential purposes.
Regarding climate-related disclosures, the FSB’s progress report reviews the progress that the International Sustainability Standards Board has made in developing a global baseline standard, and the actions that financial authorities have taken across jurisdictions to ensure compliance with this. It also addresses the findings of the 2022 status report from the board’s Task Force on Climate-related Financial Disclosures, and states the need for continued momentum across the industry.
