Compliance with Basel II requirements is particularly important for IT departments within the banking industry.
What is Basel?
The Basel Accords are a set of international banking guidelines to reduce banking risk and create more consistent banking practices between countries. Currently, there are three versions of Basel standards and each is meant to build onto the previous version.
Sets minimum requirements for the amount of capital banks must keep on hand.
Establishes three ‘pillars’ for compliance. The three Basil II pillars are:
1. Minimum Capital Requirements – addresses credit risk.
2. Supervisory Review – requires banks to review all kinds of risk, including operational.
3. Market Discipline – establishes disclosure requirements.
Created in 2010 in response to the 2009 banking crisis; mainly focused on bank capital and liquidity.
Basel II establishes requirements for managing operational risk, including network and cyber security risks. Thycotic’s IT security software Secret Server, Password Reset Server and Group Management Server helps manage operational risk in IT departments and add important protection for Identity and Access Management (IAM).