On 15 November 2024, the Monetary Authority of Singapore made an update on crisis management exercise, which was conducted by financial regulators from the Asia Pacific region in collaboration with leading global cloud service providers on 6 November 2024. Organised under the Financial Sector Cloud Resilience Forum, established by the Monetary Authority of Singapore, this initiative simulated a severe public cloud incident that disrupted multiple financial sectors across the region. This exercise, the first of its kind in Asia Pacific, aims to strengthen the operational resilience of the financial sector as it becomes increasingly reliant on cloud technology.
The event focused on fostering collaboration and deepening understanding between financial regulators and cloud service providers regarding incident response mechanisms. Participants explored how to manage the fallout from a significant public cloud disruption, highlighting the need for effective communication, situational awareness, and coordinated recovery efforts. The simulation provided an opportunity to assess supervisory interventions and develop measures to mitigate the impact of such disruptions. It underscored the importance of close cooperation in responding to crises to maintain public confidence in the financial sector.
The event was attended by senior representatives from prominent financial authorities across the region, including the Australian Prudential Regulation Authority, the Hong Kong Monetary Authority, the Indonesian Financial Services Authority, the Bank of Japan, the Central Bank of Malaysia, the Central Bank of the Philippines, the Bank of Thailand, and the Monetary Authority of Singapore. Global cloud service providers participating in the exercise included Amazon Web Services, Google Cloud, and Microsoft Azure, which play crucial roles in supporting financial institutions through their cloud infrastructure.
During the simulation, participants examined the coordination and decision-making processes needed to respond effectively to severe disruptions in cloud services. The exercise demonstrated the importance of a unified approach to managing operational risks in a financial system that increasingly depends on digital infrastructure. Financial regulators and cloud service providers worked together to identify supervisory interventions that could help reduce the impact of such disruptions.
Vincent Loy, Assistant Managing Director for Technology at the Monetary Authority of Singapore and Chairperson of the Financial Sector Cloud Resilience Forum, stated: “Cloud adoption is set to increase as the financial industry presses ahead with digital transformation. This Forum provides an important avenue for regional financial authorities and global CSPs to work together to improve operational resilience in the financial sector. This inaugural exercise is timely as it helps to strengthen processes for responding to a major public cloud incident in the financial sector. Through the exercise, both the financial authorities and CSPs have gained deeper insights on how to coordinate their efforts effectively in responding to and recovering from disruptions, and maintain public confidence in the financial sector”.
The Financial Sector Cloud Resilience Forum, established in April 2023, provides a platform for financial regulators and cloud service providers to share insights and develop best practices for managing risks associated with public cloud services in the financial sector. The forum meets twice yearly and aims to ensure operational resilience by addressing emerging challenges in the increasingly digital financial landscape. This exercise demonstrated the importance of preparing for potential disruptions in cloud services, which are important to the functioning of modern financial institutions.
