CBK unveils advanced cyber and operational resilience framework for banks

Amid a sharp increase in the frequency and sophistication of cyberattacks worldwide, which now pose risks not only to individual institutions but to the entire financial system, the Central Bank of Kuwait (CBK) has issued an updated cyber and operational resilience framework for local banks and financial institutions.

The framework aligns with globally recognized compliance standards and represents a significant step toward strengthening Kuwait’s financial system against emerging digital threats.

The new framework moves beyond basic cybersecurity compliance, adopting a regulatory model that emphasizes flexibility and maturity.

It is designed to enable financial institutions to anticipate disruptions, withstand them, recover quickly, and adapt confidently. This approach strengthens the resilience of the banking sector and contributes to the stability of Kuwait’s financial system as a whole, reports Al-Rai daily.

The Central Bank noted that the adoption of advanced technologies such as cloud computing, artificial intelligence, machine learning, and quantum computing, along with innovations like open banking, requires a regulatory framework capable of addressing interconnected operational and cyber risks.

The unified framework ensures consistent cybersecurity practices, improves institutional readiness, and closes systemic gaps that could emerge from varying approaches across institutions.

The framework also places particular emphasis on third-party risks and supply chain dependencies, reflecting the growing reliance on external service providers, fintech partnerships, and complex operational linkages. It supports institutions in enhancing their ability to manage these risks while ensuring governance, oversight, and continuity of critical financial services.

CBK’s framework builds on its 2020 cybersecurity guidelines and represents an advanced stage of supervision. It shifts the focus from simple compliance with controls to institutional readiness, incident response, recovery, and business continuity.

The framework aims to protect financial stability, enhance confidence in digital financial services, and strengthen Kuwait’s position in the regional and international financial landscape.

The framework is structured around six key areas: governance; risk and compliance; technology and operations; third-party risk management; emerging technologies; and payment security and operational resilience.

It incorporates a proactive approach to risk management, continuous improvement, human capacity development, and proportionality according to the size and complexity of each institution.

Governance and accountability at board and executive levels are emphasized, alongside alignment with international best practices tailored to Kuwait’s regulatory and operational context.

A two-tiered assessment methodology measures compliance at the level of individual controls and readiness at the level of sub-domains using a five-level maturity scale, from primary to innovative.

This cumulative approach ensures that higher levels of resilience are achieved only after full implementation of preceding levels, fostering sustainable institutional capabilities and a unified benchmark for the banking sector.

The framework also provides flexibility in areas such as payment security, operational processes, emerging technologies, governance, risk management, and third-party oversight, ensuring institutions can adapt to future technological and operational developments.