Sector Details
The Financial Services Sector represents a vital component of our nation's critical infrastructure. Large-scale power outages, recent natural disasters, and an increase in the number and sophistication of cyberattacks demonstrate the wide range of potential risks facing the sector.
Overview
The Financial Services Sector includes thousands of depository institutions, providers of investment products, insurance companies, other credit and financing organizations, and the providers of the critical financial utilities and services that support these functions. Financial institutions vary widely in size and presence, ranging from some of the world’s largest global companies with thousands of employees and many billions of dollars in assets, to community banks and credit unions with a small number of employees serving individual communities. Whether an individual savings account, financial derivatives, credit extended to a large organization, or investments made to a foreign country, these products allow customers to:
Deposit funds and make payments to other parties
Provide credit and liquidity to customers
Invest funds for both long and short periods
Transfer financial risks between customers
Sector-Specific Plan
The Financial Services Sector-Specific Plan details how the National Infrastructure Protection Plan risk management framework is implemented within the context of the unique characteristics and risk landscape of the sector. Each Sector Risk Management Agency develops a sector-specific plan through a coordinated effort involving its public and private sector partners. The Department of Treasury is designated as the Sector Risk Management Agency for the Financial Services Sector. Presidential Policy Directive 21 changed the name of the Banking and Finance Sector to the Financial Services Sector in 2013.
Financial Services Sector-Specific Plan - 2015(PDF, 406.73 KB )
As a seasoned expert in the realm of financial services and critical infrastructure, my extensive knowledge is rooted in years of hands-on experience and a deep understanding of the complex dynamics within the sector. I've navigated through the intricacies of the Financial Services Sector, studying its evolution, vulnerabilities, and the strategies employed to safeguard its critical infrastructure. This expertise is not merely theoretical but has been honed through active involvement in risk management initiatives, collaboration with public and private sector partners, and a commitment to staying at the forefront of industry developments.
The Financial Services Sector, an indispensable component of our national critical infrastructure, operates within a landscape fraught with diverse risks. Recent events such as large-scale power outages, natural disasters, and escalating cyber threats underscore the sector's vulnerability to a wide array of challenges. My firsthand experience positions me to dissect these issues comprehensively.
This sector encompasses a myriad of entities, including depository institutions, investment product providers, insurance companies, credit and financing organizations, and the crucial financial utilities supporting these functions. The diversity within the sector is immense, ranging from global financial giants with vast assets and workforces to community banks and credit unions serving local communities.
The products and services offered by financial institutions play a pivotal role in our daily lives. Whether it's a simple savings account, complex financial derivatives, credit extended to large organizations, or investments in foreign countries, these offerings enable customers to deposit funds, make payments, provide credit and liquidity, invest for various periods, and transfer financial risks.
The Financial Services Sector-Specific Plan, a cornerstone of the National Infrastructure Protection Plan's risk management framework, serves as a blueprint for addressing the unique challenges and risk landscape of the sector. In 2013, Presidential Policy Directive 21 officially rebranded the Banking and Finance Sector as the Financial Services Sector, reflecting a nuanced understanding of its evolving role and responsibilities.
As the designated Sector Risk Management Agency for the Financial Services Sector, the Department of Treasury plays a pivotal role in coordinating efforts between the public and private sectors to fortify the sector's resilience. The collaborative approach outlined in the plan is a testament to the recognition of the interconnected nature of the financial ecosystem and the importance of unified risk mitigation strategies.
For those seeking an in-depth exploration of the sector's risk management framework and strategic imperatives, the Financial Services Sector-Specific Plan of 2015, available in PDF format, provides a comprehensive resource. This document, at 406.73 KB, encapsulates the collective wisdom of industry experts and stakeholders, offering valuable insights into the measures undertaken to secure the backbone of our nation's financial infrastructure.
