LONDON—New rules will be needed to deal with operational risks from banks relying on outsourced ‘cloud’ computing from Amazon, Google, Microsoft, and others for providing services to customers, the Bank of England said on Friday. “Regulated firms will continue to have primary responsibility for managing risks stemming from their outsourcing and third-party dependencies,” the BoE’s Financial Policy Committee said in a statement. “However, additional policy measures, some requiring legislative change, are likely to be needed to mitigate the financial stability risks stemming from concentration in the provision of some third-party services.” Measures should include an ability to designate some third parties as ‘critical’, meaning they would be required to meet ‘resilience’ standards which would be regularly tested. The BoE and the Financial Conduct Authority are due to publish a discussion paper on the subject next year, it said. The measures are similar to those in a European Union law now …
New Rules Needed to Cover Risks From Cloud Computing, Says Bank of England
October 9, 2021
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