N.Y. Department of Financial Services Makes Adjustments to their Cybersecurity Regulations

Most requirements still in place for firms to adhere to but also allows them more flexibility

By Debbie Brenner

The New York State Department of Financial Services recently made some adjustments to its proposed cybersecurity regulation to give financial institutions more flexibility after weighing critiques it received during an open-comment period.

The NYDFS published the updated proposal on Wednesday and stated that it will still require banks, insurance companies and other financial institutions to establish a cybersecurity program and appoint a CISO, but gives them more time by moving the deadline to March 2017 instead of January.

Furthermore, the agency will now allow firms to report cyberattacks within 72 hours of determining that a breach occurred, versus having 72 hours from the time of the actual breach.

During the public-comment period for the original proposal, the American Insurance Organization, an industry group, critiqued the proposal for being difficult to implement and argued that it could weaken security instead of strengthening it.
For example, the association said the six-year retention period mandated by the original rule was unnecessary and would create an additional stockpile of data for hackers to target. The updated proposal shortens the retention period to five years.
The proposed rule is subject to another 30-day comment period before it can be implemented.

We recently held a webinar with IBM’s Sr. Financial Cyber Security Special to discuss NY’s cyber security requirements for financial institutions. Click on the video below to listen to the conversation.

financial services
Cybersecurity for Financial Institutions: The Cost of the Financial Security Blanket

Other helpful posts:

Tips For Financial Institutions to Enhance Your Information Security Policies

The Advantages of Performing Cybersecurity Risk Assessments


Complying with PCI DSS 3.2 in the Office 365 Space is a Must for Financial Organizations


Achieving Greater Security Intelligence Through Architectural Assessments of QRadar


Erick Bacallao joined Champion Solutions Group in 2015 after a career of Software Development in Cuba at the National Cancer Care Institute of Cuba, followed by moving to the States with allAware.


Champion acquired allAware and its properties and Erick has utilized his extensive background and expertise in IT and Software Development to rise to VP of Product Development in less than 5 years. During this time, Erick has been involved with key projects that led to the launch of numerous products including CSP Boss, Inscape platform and 365 Productivity Insights.


Erick has a Bachelor of Science in Computer Science from the University of Havana. He won Gold Medals for Programming from the Ministry of Education in Cuba, and he is certainly still a Gold Medalist for Champion!


As President and CEO, Chris is responsible for the development of key strategic alliances and solution portfolio. He leads Champion’s go-to market and execution strategies for integrated offerings in the cloud, in security, and in digital infrastructure, always focusing on improving the customer experience and driving transformative business outcomes.


He also aligns key partner initiatives with company strategy and oversees corporate marketing and messaging to gain mindshare with customers and partners. It’s his vision and innovativeness that have catapulted Champion up the ranks to become a $100M+ organization—and one of the most respected solution providers in the industry.


Over the past two decades, Chris has also focused on mergers and acquisitions, as well as innovative product development. He is the original founder and an active member on the Board of Managed Maintenance, Inc., a SAAS provider and consulting firm that utilizes their award-winning One-View Portal to help the IT Channel and its customers manage their IT Maintenance.


Chris is also the original founder and chief strategist behind one of the original storage cloud providers, Storage Access / BluePoint. During the course of a few short years, he had raised $20M and took that company public on the Toronto Stock Exchange. It has since been acquired by Pomeroy.


In 2012, Chris led the acquisition of MessageOps and continued the product development and worldwide launch of its premier SAAS, 365 Command. Built on Microsoft Azure, 365 Command is currently managing over 1 million seats of Microsoft’s Office 365. After achieving this phenomenal milestone, 365 Command and other MessageOps O365 utilities were sold to Kaseya.


Over the past 35 years, Chris as worked tirelessly to not only advance his own career, but those of his employees. In addition to leading a $100M organization, Chris can also be found sitting with sales teams, cold calling and coaching, and validating why Champion has been listed on Best Places to Work by both South Florida Business Journal and Computerworld.

Ultimately, the success garnered by Champion Solutions Group, its associated companies, and their employees is due in large part to the leadership of its President and CEO. Perhaps the most fitting award Chris has earned is South Florida Business Journal’s 2013 Ultimate CEO Award.