The Basel Committee on Banking Supervision this week outlined 14 principles that bank boards and senior managers should use to manage the special risks posed by electronic banking.
The group of international regulators was careful to point out that these principles are "not put forth as absolute requirements or even best practice." Rather they are designed to help banks better manage e-banking risks.
The committee "believes that setting detailed risk management requirements in the area of e-banking might be counterproductive, if only because these would be likely to become rapidly outdated because of the speed of change related to technological and customer service innovation," the regulators said Tuesday.
The Basel Committee groups the 14 guidelines into three broad categories: board and management oversight, particularly of third-party outsourcers; security controls, including privacy issues as well as authorization privileges and authentication measures; and legal and reputational risk management issues, including business continuity and contingency planning.
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