FSB consults on common format for reporting operational incidents

Posted on October 27, 2024 by Editor

On 17 October 2024, the Financial Stability Board (FSB) launched a consultation on its new Format for Incident Reporting Exchange (FIRE).

This initiative seeks to create a unified approach for financial institutions to report operational incidents, including cyber breaches, to regulatory authorities. The consultation is part of the FSB's efforts to enhance global coordination and streamline incident reporting processes.

FIRE aims to reduce the fragmentation in reporting frameworks, which can slow down incident response and recovery due to inconsistencies across jurisdictions. By introducing a common set of reporting standards, FIRE will help financial firms better navigate cross-border regulatory requirements and enhance communication with both authorities and service providers. Its design includes both a human-readable format and a machine-readable version using an XBRL taxonomy, promoting flexibility and interoperability.

This initiative builds on the FSB's 2023 recommendations for greater convergence in cyber incident reporting. Disparate reporting systems can often complicate incident management, potentially increasing financial stability risks. Harmonising these frameworks can help reduce those risks while ensuring quicker, more effective responses from financial institutions and regulators alike.

By promoting structured and consistent reporting, FIRE will support better risk management, accountability, and faster regulatory responses. Explore the full consultation here.