2022 Assessment of the Reserve Bank Information and Transfer System 1. Executive Summary
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Purpose
This report is an assessment of the Reserve Bank Information and Transfer System (RITS), which is operated by the Bank's Payments Settlements Department. The Assessment was independently prepared by the Bank's Payments Policy Department and endorsed by the Payments System Board. It covers the period from April 2021 to March 2022.
Approach
RITS has been assessed against the Principles for Financial Market Infrastructures (the Principles). These international standards were developed by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).[1] The assessment was carried out in accordance with the approach and rating system set out by CPMI and IOSCO in Principles for Financial Market Infrastructures: Disclosure framework and assessment methodology (the Disclosure Framework) and Application of the Principles for Financial Market Infrastructures to Central Bank FMIs.[2]
Conclusion
This Assessment concludes that, at end March 2022, RITS observed all of the relevant Principles, except for Principle 17 (Operational risk) which it broadly observed.
Recommendations
To observe Principle 17 (Operational risk), Payments Policy Department recommends that the Bank should complete work currently underway to improve and refine the metrics used to measure the operational resilience and stability of IT systems supporting RITS.
Oversight focus
Over the coming assessment period, areas of particular focus in the oversight of RITS will include:
- developments designed to ensure that RITS remains resilient in the face of evolving cyber-security threats. Specifically, Payments Policy Department will monitor progress in the continued exploration of enhancements to the ability to limit exposure to cyber risk and recover RITS from cyber-attacks in a timely manner.
- the impact of staff resourcing challenges on management of RITS operational risk.
- the impact of planned upgrades to the Bank's physical infrastructure on the operational stability and resilience of RITS.