Cyber threats are a growing concern for organizations across various sectors in an increasingly digital world. The Securities and Exchange Board of India (SEBI) has recognized this need and introduced the Cybersecurity and Cyber Resilience Framework (CSCRF) to enhance the security measures of financial entities. This blog will explore the key aspects of the CSCRF, the Cyber Capability Index (CCI), and how organizations can automate their compliance efforts.
What is the Cybersecurity and Cyber Resilience Framework?
The Cybersecurity and Cyber Resilience Framework is a structured approach to strengthen the cybersecurity posture of entities regulated by SEBI. It addresses the increasing sophistication of cyber threats and aims to protect investors and financial market infrastructures. The framework ensures that uniform cybersecurity standards are implemented across various financial entities, enhancing their resilience against potential cyber-attacks.
Why Was the CSCRF Developed?
The CSCRF was developed in response to the rising number of cyber threats faced by organizations. It is designed to protect a wide array of entities, including banks, investment funds, mutual funds, and other financial institutions. The framework emphasizes the importance of being prepared for cyber incidents, as even smaller organizations can be targeted, leading to significant repercussions across the entire financial ecosystem. A single cyber-attack can create a domino effect, impacting various stakeholders and potentially compromising the stability of the financial market.
Entities Required to Comply with the CSCRF
- All investment funds
- Alternative investment funds
- Bankers to an issue
- Self-certified syndicate banks
- Clearing corporations
- Collective investment schemes
- Credit rating agencies
- Custodians
- Debenture trustees
- Depositors
- Designated depository participants
- Depository participants through depositories
- Investment advisers
- Research analysts
- KYC registration agencies
- Merchant bankers
- Mutual funds and asset management companies
- Portfolio managers
- Registered issue and share transfer agents
- Stock brokers through exchanges
- Stock exchanges
- Venture capital funds
The Five Pillars of the CSCRF
The CSCRF is built on five key pillars, which are closely connected to the NIST Cybersecurity Framework:
- Anticipate: Understanding potential threats and vulnerabilities.
- Withstand: The capability to endure and resist cyber threats.
- Contain: Managing and mitigating the impact of an attack.
- Recover: The ability to restore operations post-incident.
- Evolve: Continuously improving the organization’s cybersecurity posture.
Cyber Capability Index (CCI)
One of the significant aspects of the CSCRF is the Cyber Capability Index (CCI), which assesses the maturity of an organization’s cybersecurity measures. The CCI is categorized into six levels:
- 91-100: Exceptional
- 81-90: Optimal
- 71-80: Manageable
- 61-70: Developing
- 51-60: Bare Minimum
- Below 50: Failed
Organizations need to aim for higher levels of CCI to ensure robust cybersecurity practices. Unfortunately, many organizations currently fall into the lower categories, indicating a significant gap in their cybersecurity readiness.