Information Technology Resilience Index
Prelims:
Indian Economy
Mains:
GS Paper III
-Indian Economy
Current relevance:
`The
Securities and Exchange Board of India (SEBI) has introduced an Information
Technology Resilience Index (ITRI) for Market Infrastructure
Institutions (MIIs), including stock exchanges and depositories, to
assess and strengthen the resilience of their IT systems.
Highlights:
About Information
Technology Resilience Index (ITRI):
1.
The
ITRI is designed to assess the resilience of IT systems maintained by Market
Infrastructure Institutions (MIIs).
2.
It
covers stock exchanges and depositories.
3.
Aims:
To strengthen oversight of the resilience of IT systems by enabling
early identification of emerging vulnerabilities and facilitating timely
corrective measures to prevent potential disruptions.
4.
The
index evaluates MIIs across nine parameters: Availability, Security,
Integrity, Governance, Reliability and monitoring, Business continuity,
Modularity and flexibility, Scalability and Other relevant factors.
5.
Early
Warning System:
i.
MIIs
are required to establish an Early Warning System (EWS) linked to the
ITRI.
ii.
It
is intended to detect deterioration in resilience parameters before they
develop into significant operational problems.
iii.
It
can flag risks that could lead to system slowness, performance degradation
or disruption.
iv.
MIIs
are expected to take timely remedial measures when such deterioration is
identified.
Significance:
1.
Operational
resilience: Strengthens
the ability of critical market institutions to maintain reliable IT systems.
2.
Early
risk detection: Enables
potential technological vulnerabilities to be identified before they result in
major disruptions.
3.
Business
continuity: Helps
maintain continuity of market infrastructure during technological problems.
4.
Financial-market
stability: Resilient
stock exchanges and depositories are important for the smooth functioning of
securities markets.
5.
Preventive
regulation: The
combination of ITRI assessment, an Early Warning System and timely
remedial action enables proactive management of technology-related risks
before they cause significant disruptions.
Source: THE HINDU - https://www.thehindu.com/business/sebi-introduces-it-resilience-index-for-market-infrastructure-institutions/article71385199.ece