- The Financial Stability Board (FSB) is consulting on a common Format for Incident Reporting Exchange (FIRE) that financial firms can use for the reporting of operational incidents, including cyber incidents.
- Effective incident reporting strengthens supervision and regulation, fostering transparency and accountability in financial institutions by ensuring regulators are promptly informed of significant operational issues.
- Reducing fragmentation in incident reporting is critical in a globalized financial system where incidents can have cross-border implications. FIRE aims to increase convergence and facilitate communication within and across jurisdictions.
Incident reporting is a key mechanism for financial authorities to monitor disruptions within regulated entities. Currently, differences in reporting approaches across jurisdictions result in fragmented requirements and coordination challenges, which could exacerbate financial stability risks arising from operational incidents, including cyber incidents. Greater convergence between reporting frameworks will support financial institutions’ efficient incident response and recovery, as well as more effective supervision and cooperation among authorities.
Developed in consultation with the private sector, FIRE provides a set of common information items for reporting incidents. Its design maximizes flexibility and interoperability. Authorities can choose the extent to which they adopt FIRE, leveraging its features and definitions to promote convergence and facilitate translation between existing frameworks.
Similarly, financial institutions can use FIRE both in their reporting to financial authorities and in their relationships with service providers. The consultation package consists of (i) a ‘human-readable’ format, (ii) a structured data model of FIRE using the reporting-language-agnostic Data Point Model method, and (iii) a taxonomy in eXtensible Business Reporting Language (XBRL) as a sample machine-readable version of FIRE.