Comply With the New York Code Of Rules and Regulations (23 NYCRR 500)

What is the 23 New York Code Of Rules and Regulations 500 (23 NYCRR 500)?

The New York Codes, Rules, and Regulations (NYCRR), particularly 23 NYCRR 500, is a cybersecurity regulation enacted by the New York State Department of Financial Services (NYDFS). The NYCRR was introduced in March 2017 following growing numbers of cyber threats targeting the financial services sector.

It was the first comprehensive cybersecurity regulation for financial institutions in the U.S., setting a precedent for other states and industries.It establishes stringent requirements for financial services organizations to safeguard customer information and ensure the resilience of critical IT systems.

Core elements include implementing a data-centered, risk-based cybersecurity program, appointing a Chief Information Security Officer (CISO), conducting periodic risk assessments, and maintaining policies for access control, data encryption, and incident response. Organizations must also report cybersecurity events to the NYDFS within 72 hours of discovery.

Why is data-centric security good for 23 NYCRR 500 compliance?

The NYCRR 23 Part 500 regulation directly relates to data security requirements by mandating a comprehensive, risk-based approach to protecting sensitive information within financial institutions. The regulation requires organizations to implement a cybersecurity program that safeguards nonpublic information (NPI), ensuring its confidentiality, integrity, and availability.

The 23 NYCRR 500 cybersecurity framework encourages financial organizations to implement cybersecurity and data protection proactively. Additionally, the 23 NYCRR 500 cybersecurity framework will help organizations comply with the pre-existing data privacy regulations.

Multi-cloud environments, data sharing, and third-party collaboration can expose personal consumer data, leading to data breaches and loss. Traditional perimeter-centric security tools
fail to secure data in such a scenario. Seclore’s Data-Centric Security protects sensitive data by providing persistent, granular, Data-Centric controls that secure information.