The U.S. Department of the Treasury recently launched a public-private partnership to boost regulatory and private sector cooperation as it increases its adoption of cloud technology services.
According to a press release, the Treasury has launched the Cloud Executive Steering Group (CESG) as part of its approach to increasing adoption of cloud technology services. This effort aims to ensure that the Treasury, financial federal regulators, and the financial sector work together to address challenges that accompany increasing cloud adoption identified by the Treasury's Financial Services Sector’s Adoption of Cloud Services report released last February.
“This unprecedented collaboration among financial regulators and the private sector will bring thoughtful and lasting solutions to the cloud-based opportunities and challenges Treasury has identified,” said Deputy Secretary of the Treasury Wally Adeyemo, according to the press release. “American consumers and financial institutions will benefit from these cloud adoption efforts for years to come.”
Key objectives for the CESG include boosting document effective practices for cloud third-party risk, outsourcing, and due diligence processes to increase transparency; developing a “best practices” document for institutions considering “all in” or hybrid cloud adoption strategies including an update to the Financial Sectors’ Cloud Profile; improving transparency and monitoring of cloud services for better “Security by Design;” establishing a common set of terms and definitions that can be used by financial institutions and regulators; enhancing information sharing and coordination for supervision and examination of financial institutions; and determining if existing authorities for cloud service provider oversight are sufficient and account for systemic risks.
The CESG will report to the Financial Stability Oversight Council (FSOC), Financial and Banking Information Infrastructure Committee (FBIIC), and the Financial Services Sector Coordinating Council (FSSCC). Co-Chairs of CESG are financial leaders that understand the cybersecurity needs of the financial services sector and head public private engagement.
Co-Chairs of the CESG include Graham Steele, Treasury assistant secretary for Financial Institutions; Michael Hsu, acting comptroller of the Currency; Rohit Chopra, director of Consumer Financial Protection Bureau; Bill Demchak, chief executive officer of PNC Financial Services; and Ron Green, chair of Financial Services Sector Coordinating Council and chief security officer of Mastercard.
