CyLawCom Audit for Cooperative Banks

 CyLawCom Audit is an audit of the business process of an entity from the objective of identifying Cyber Law related risks of business. The audit is normally followed by a recommendation on actions to be taken to bring the Cyber Law Compliance level to an acceptable level.

 CyLawCom audit is typically undertaken in two phases. The “CyLawCom Risk Audit” phase is the phase in which the risks are identified and a “Risk Assessment Report” is made available to the management of the organization.

 The “CyLawCom Compliance Audit” is the phase in which the organization’s efforts of “Cyber Law Risk Compliance Measures” based on an earlier “Risk Audit” is evaluated and a “Compliance Certificate” is issued by the audit agency to a “CyLawCom Certifying Agency”.

 CyLawCom Audit process has been developed by Cyber Law College and is undertaken through professionals trained in “Techno Legal Cyber Security Aspects”, referred to as “CyLawCom Examiners”. Cyber Law College enrolls qualified professionals as “Provisional CyLawCom Examiners” to whom necessary training is administered to undertake such audits. Additionally, “Certified CyLawCom Examiners” are being developed through a competitive qualification examination.


The recent turmoil created in Bangalore by action of RBI on Sauharda Cooperative Bank and some of the moves which RBI has taken in recent days on the regulatory issues of Cooperative Banks has revived the memories of the regulatory transformation that was unleashed in India on the NBFC industry in the post CRB scam period.

In the aftermath of the measures taken by RBI and SEBI during that time, the then thriving NBFC industry vanished from the Indian scene.

Keen industry observers have never agreed that these developments have necessarily been beneficial to the Indian community.

The undercurrents felt now in the Cooperative Banking field indicate the immediate necessity for some counter measures to prevent the NBFC story being repeated in the Cooperative banking sector.

As a strategy to respond to the emerging developments in the Cooperaive Banking industry,  it is felt that there is a need to develop of a process of Voluntary Compliance of regulations in a manner that is likely to strengthen a Compliant Bank to successfully meet the emerging changes in the environment.

The strategy is to always keep ahead of regulations by a few steps so that any move of RBI will be more than adequately addressed by the current compliance practices of the Bank. 

Since we cannot conceive a Banking institution today without a computerized environment, such regulations have a strong bias to systems of IT controls and Cyber Law Compliance. Hence the CyLawCom practice pioneered by Naavi is being expanded to include this industry segment.

This Voluntary Compliance programme will be termed CyLawCom-CoopBank. The CyLawCom-CoopBank will include ITA-2000 compliance, RBI Guidance on various issues of operations and the Use of technology in Cooperative Banks, Principles of international regulations, accounting standards and IT Security Standards relating to sound management and disclosure principles properly adopted to the requirements of the Indian Cooperative Banks.

 Any suggestions in this regard from interested persons is welcome.

Disclaimer: 

The CyLawCom Audit process takes adequate care of the expectations of  Regulatiory and Law Enforcement Agencies in the Indian scenario on a dynamic basis. However, it must be recognized that CyLawCom Audit process is a voluntary Cyber Law Compliance programme and  does not create an obligation on  the Regulatory Agencies or the Law Enforcement or the Judiciary to accept it with or without reservations. Further, the audit and certification may be a reflection of the status as at a point of time  and cannot guarantee a continued compliance between two points of reference times. Neither the Auditors nor the Certifiers are liable for any consequences in the event of the process falling short of Policing or Judicial expectations.

Naavi

Dated: May 26, 2005

 

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