Abu Dhabi: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has unveiled its Information Technology (IT) Risk Management Guidance, a detailed framework designed to manage technology risks within ADGM’s financial sector.
According to Emirates News Agency, the Guidance follows extensive industry engagement, stemming from the FSRA’s earlier Discussion Paper on IT Risk Management and an industry briefing conducted in February 2024. Stakeholders have responded positively to the Guidance, which consists of four primary sections outlining best practices for IT risk management that entities regulated by the FSRA are encouraged to adopt.
The first section, “Establishing a Culture of Effective IT Risk Management,” delves into governance and controls for handling IT risks, including incident management, audits, and the management of IT third-party service providers. The second section, “Managing an IT Environment,” addresses the management of IT assets, infrastructure, system lifecy
cle, resilience, and responses to cyber incidents.
“Interacting Securely” is the third section, focusing on system access controls, cryptographic key management, and secure online transactions. The final section, “Leveraging Business Embedded Technologies,” investigates emerging technologies such as algorithm-driven solutions like generative artificial intelligence and decentralized infrastructure solutions, including virtual asset platforms.
The Guidance aligns with international standards and best practices as outlined by both international standard-setting bodies and financial regulators. The FSRA anticipates that regulated entities will implement these best practices in a manner that aligns with their size, complexity, and business activities.
Emmanuel Givanakis, CEO of the ADGM FSRA, commented on the publication, stating, “As technology continues to transform financial services, robust IT risk management becomes increasingly critical. This Guidance reinforces our supervisory focus on IT risk and cyber
security while supporting innovation in digital finance. It provides practical direction for senior executives, compliance officers, and IT practitioners to strengthen their risk management frameworks. This initiative reflects our commitment to building a resilient and progressive international financial centre in Abu Dhabi.”
