Basel II Compliance

The Basel II Accord proposes methodologies for banks to calculate more accurately the capital provisions they should make against credit, commercial, and operational risk. Basel II defines operational risk as "the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events". Information security is an "operational risk management system" that significantly contributes to the level of operational risk.

The Basel Committee on Banking Supervision's "Sound Practices for the Management and Supervision of Operational Risk" notes some of the operational risk event types that the Committee has identified as having the potential to result in substantial losses. These include damage from computer hacking, employee theft, fiduciary breaches, and misuse of confidential customer information.

In order to limit their operational risk-and thus limit their overall risk and maintain favorable pricing in the market-financial institutions operating under Basel II will need to implement robust data security measures, including the protection of customers' private information.

How does CipherOptics help?
CipherOptics protects all data that traverses your network, or leased third party networks. We enable Secure Information Sharing across any network, regardless of the size, type or topology. We protect both your network and your data, minimizing your operational risk and providing you with comprehensive network-wide security to protect your information.

About CipherOptics
CipherOptics is the leader in network-wide encryption. Offering an innovative policy and key management solution, coupled with high speed, low latency encryption technology, CipherOptics helps their customers mitigate the risk of data leakage, loss and theft over any network.

Learn more about Basel II

Learn more about Secure Information Sharing

Helpful Resources
Text of the Basel II Accord
Basel Committee on Banking Supervision: "Sound Practices for the Management and Supervision of Operational Risk"
For more information or to learn how CipherOptics can help you protect your sensitive data as it moves across any network, call us at 1-877-878-6655 or feel free to ask us a quick question.