The original basel capital accord implemented a

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Unformatted text preview: ivate citizens have the right to sue the agency to protect their privacy. This leaks into the computer world because this information is usually held by one type of computer or another. If an agency’s computer holds an individual’s confidential information, it must provide the necessary security mechanisms to ensure it cannot be compromised or copied in an unauthorized way. Basel II The Bank for International Settlements devised a means for protecting banks from overextending themselves and becoming insolvent. The original Basel Capital Accord implemented a system for establishing the minimum amount of capital that member financial institutions were required to keep on hand. In November 2006, the Basel II Accord went into effect. Basel II takes a more refined approach to determining the actual exposure to risk of each financial institution and taking risk mitigation into consideration to provide an incentive for member institutions to focus on and invest in security measures. Basel II is built on three main components, called “Pillars.” Minimum Capital Requirements measures the risk and spells out the calculation for determining the minimum capital. Supervision provides a framework for oversight and review to continually analyze risk and improve security measures. Market Discipline requires member institutions to disclose their exposure to risk and validate adequate market capital. Information security is integral to Basel II. Member institutions seeking to reduce the amount of capital they must have on hand must continually assess their exposure to risk and implement security controls or mitigations to protect their data. Payment Card Industry Data Security Standards (PCI DSS) Identity theft and credit card fraud are increasingly more common. Not that these things did not occur before, but the advent of the Internet and computer technology have combined to create a scenario where attackers can steal millions of identities at a time. The credit card industry took proactive steps to curb the problem and stabilize customer trust in credi...
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