<ul><li>A recent audit by the Federal Deposit Insurance Corp.’s (FDIC) Office of Inspector General highlighted key risks to banks, including cyberattacks and vulnerabilities through third-party relationships.</li><li>The audit revealed that the number of 'problem institutions' in terms of safety and soundness concerns has increased, with 66 institutions and $87.3 billion in assets compared to the previous year's figures of 44 institutions and $54.5 billion in assets.</li><li>The audit also noted the FDIC's staffing challenges, including the retirement eligibility of key examiners with advanced IT subject matter expertise, which raises concerns about the agency's ability to accurately assess and manage IT and cyber-related risks.</li><li>Furthermore, the audit emphasized the need for the FDIC to map interconnections between banks and third parties to identify potential operational risks and cyber intrusions.</li></ul>

Inspector General Report Points to Banks’ Cybersecurity Risks and Dwindling FDIC ‘IT Expertise’

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