Financial Sector forum for Operational Resilience (FSOR)

Abstract icon The FSOR is a forum for collaboration between authorities and key financial sector participants. Danmarks Nationalbank chairs and acts as secretariat of the FSOR.

To ensure correct and timely settlement of the many daily transfers in the Danish financial system, the financial sector uses complex IT systems and is interconnected via data centres and payment and settlement systems. Sector participants must safeguard their own systems, but there is also a need for a concerted and coordinated effort to ensure that the overall financial system is resilient to operational risks, including e.g. cyber risks, which constitute a special type of operational risk.

Danmarks Nationalbank put operational risks and cyber risks on the agenda of the Systemic Risk Council in December 2015, and at follow-up discussions with the financial sector there was broad agreement that formalised sector collaboration in this area was required. Consequently, Danmarks Nationalbank set up the Financial Sector forum for Operational Resilience (FSOR) aiming to increase operational resilience, including cyber resilience, in Denmark.

The FSOR's vision is that the Danish financial sector should be best in class in Europe when it comes to countering the threat from cybercrime, so that it:

  • continues to provide a secure and efficient infrastructure, and
  • supports the Danes' continued trust in the digital solutions of the Danish financial sector.

The tasks of the FSOR are to:

  • ensure a common overview of operational risks that may have a cross-sector impact and that could potentially pose a threat to financial stability in Denmark,
  • decide on and ensure implementation of joint measures to ensure financial sector resilience to major operational incidents, including cyberattacks,
  • create a framework for collaboration and information sharing – within the sector, between different sectors and internationally.

The FSOR held its first meeting in June 2016 and meets two times a year. 

Cyber security in the financial sector

For several years, the Danish financial sector has made concerted efforts to strengthen operational resilience.

Although each financial institution is responsible for ensuring stable operation and operational resilience, the institutions are interconnected. Collaboration across the sector is therefore necessary, and this is the reason for the establishment of FSOR in 2016.

FSOR works with initiatives within three main areas of action:

  • Strengthened sectoral collaboration and improved scope for action for the individual players
  • Stronger national and international collaboration with relevant stakeholders
  • Increased awareness and knowledge of cybersecurity.

FSOR participants

Banks and mortgage banks: Danske Bank, DLR Kredit, Jyske Bank, Nordea, Nykredit, Sydbank, Spar Nord

Insurance and pension companies: PensionDanmark, Codan

Payment and settlement systems: Nets, VP Securities

Data centres: Bankdata, BEC, JN Data, SDC

Industry associations: Finance Denmark, Danish Insurance Association

Authorities: Centre for Cyber Security, Ministry of Business, Danish Financial Supervisory Authority, Danmarks Nationalbank

Others: e-nettet, the Financial Stability Company, Nasdaq, NFCERT

Danmarks Nationalbank chairs and acts as secretariat of the FSOR.