The Basel Committee Report on Cyber-Resilience Practices has identified that the least observed practice in terms of information sharing is among regulators. This is a concerning situation, particularly considering the increasing sophistication and global nature of cyber-fraud. The lack of information sharing among regulators can lead to a lack of awareness about emerging risks and can hinder the development of a comprehensive, coordinated response. This could potentially leave certain industry sectors vulnerable to cyber threats. Therefore, there is a pressing need to enhance information sharing among regulators to ensure a robust and effective response to cyber threats.

Choice A is incorrect. Information sharing among banks is not the least prevalent practice. Banks often share information with each other to mitigate risks and enhance their cyber-resilience practices. This collaboration allows them to learn from each other’s experiences and implement effective strategies.

Choice C is incorrect. Information sharing by banks with regulators is also not the least prevalent practice. Banks are required to report certain types of information to regulators, such as incidents of cyber-attacks or breaches, as part of their regulatory obligations.

Choice D is incorrect. Information sharing by banks with security agencies isn’t the least prevalent either. In fact, it's quite common for banks to collaborate with security agencies in order to strengthen their defenses against potential cyber threats.

Things to Remember

• Information Sharing: Sharing of information among banks, regulators, and security agencies is crucial for enhancing cyber-resilience practices and combating cyber threats.
• Cyber-Resilience: The ability of an organization to prepare for, respond to, and recover from cyber attacks or incidents.
• Regulatory Obligations: Banks are required to comply with regulations that mandate reporting of cyber incidents to regulators.
• Cyber-Fraud: Criminal activities conducted through the use of computers or the internet, often involving financial fraud or data breaches.
• Global Nature of Cyber Threats: Cyber threats can originate from anywhere in the world and can target organizations across borders, highlighting the need for international cooperation and information sharing.