23 NYCRR 500
NYDFS regulation for financial cybersecurity risk management
ISO 22301
International standard for business continuity management systems.
Quick Verdict
23 NYCRR 500 mandates cybersecurity for NY financial entities with strict reporting and fines, while ISO 22301 offers voluntary BCMS certification for global resilience. Firms adopt 500 for compliance, 22301 for proven continuity and trust.
23 NYCRR 500
23 NYCRR Part 500 Cybersecurity Regulation
Key Features
- Mandates qualified CISO with annual board reporting
- Requires 72-hour cybersecurity incident notification
- Enforces risk-based cybersecurity program design
- Demands annual CEO/CISO compliance certification
- Imposes third-party service provider security policy
ISO 22301
ISO 22301:2019 Business continuity management systems
Key Features
- PDCA cycle for continual BCMS improvement
- Business Impact Analysis (BIA) for critical functions
- Risk assessment and recovery strategies
- Leadership commitment and policy requirements
- Operational testing and exercises
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
23 NYCRR 500 Details
What It Is
23 NYCRR Part 500 is the New York Department of Financial Services (NYDFS) Cybersecurity Regulation, a mandatory framework for Covered Entities in banking, insurance, and financial services. Effective March 1, 2017, with amendments in 2020 and 2023, it establishes minimum risk-based cybersecurity standards to protect Information Systems and Nonpublic Information (NPI) from threats like nation-state actors and ransomware.
Key Components
- Seven pillars: governance, risk assessment, policies, controls, monitoring, third-party management, incident response.
- 20+ sections including §500.2 (Cybersecurity Program), §500.4 (CISO), §500.9 (Risk Assessment), §500.12 (MFA), §500.17 (Notifications).
- Built on risk-assessment-centric architecture with annual CISO board reports and CEO/CISO certifications.
- No formal certification; compliance via annual April 15 filings and 5-year record retention.
Why Organizations Use It
Mandated for NYDFS-licensed entities to ensure safety and soundness, protect customer data, and mitigate cyber risks. Benefits include reduced incident impact, enforcement avoidance (e.g., multimillion-dollar fines), enhanced vendor negotiations, and alignment with NIST CSF.
Implementation Overview
Phased approach: gap analysis, risk assessment, control deployment (MFA, encryption), testing. Applies to all sizes of Covered Entities (banks, insurers); limited exemptions for <10 employees/$5M revenue. Involves CISO designation, policy approval, ongoing audits/exams.
ISO 22301 Details
What It Is
ISO 22301:2019 is the international standard titled Security and resilience — Business continuity management systems — Requirements. It provides a certifiable framework for establishing, implementing, maintaining, and improving a Business Continuity Management System (BCMS). The primary purpose is to enhance organizational resilience by protecting against, reducing the likelihood of, and ensuring recovery from disruptive incidents. It follows a risk-based approach structured around the PDCA (Plan-Do-Check-Act) cycle.
Key Components
- 10 clauses, with Clauses 4-10 forming the auditable core: context, leadership, planning, support, operation, performance evaluation, and improvement.
- Key elements include Business Impact Analysis (BIA), risk assessment, Recovery Time Objectives (RTO), and operational testing.
- Built on Annex SL high-level structure for integration compatibility.
- Certification model: voluntary, 3-year validity with annual surveillance audits via accredited bodies.
Why Organizations Use It
Organizations adopt ISO 22301 for strategic resilience amid risks like cyberattacks and pandemics, reducing downtime and financial losses. It meets regulatory pressures (e.g., EU NIS Directive) and builds stakeholder trust. Benefits include competitive advantages, lower insurance premiums, and enhanced reputation.
Implementation Overview
Implementation involves gap analysis, BIA, policy development, training, testing, and audits. Applicable to all sizes/sectors globally. Typical approach: phased rollout over 60 days to 6 months, culminating in two-stage certification (readiness and effectiveness audits).
Key Differences
| Aspect | 23 NYCRR 500 | ISO 22301 |
|---|---|---|
| Scope | Cybersecurity program, controls, incident response | Business continuity management system, resilience |
| Industry | NYDFS-regulated financial services, NY-focused | All industries worldwide, all organization sizes |
| Nature | Mandatory regulation with enforcement, consent orders | Voluntary certification standard, PDCA framework |
| Testing | Annual pen testing, bi-annual vulnerability scans | Tabletop exercises, full simulations, internal audits |
| Penalties | Multi-million fines, consent orders, license actions | Loss of certification, no legal penalties |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about 23 NYCRR 500 and ISO 22301
23 NYCRR 500 FAQ
ISO 22301 FAQ
You Might also be Interested in These Articles...
CMMC Level 2 Implementation Guide for Small DIB Contractors: First 5 Steps to C3PAO Certification with Infographic
Actionable CMMC Level 2 guide for small DIB contractors: 5-step roadmap to C3PAO certification with infographic on timelines, costs & POA&Ms. Achieve DoD compli
Beyond the Burden: How Intuitive Compliance Software Transforms Daily Workflows
Explore intuitive compliance software that automates workflows, simplifies onboarding, and reduces stress. Cut non-compliance costs 3x and boost efficiency for
Unpacking the True Cost: A Guide to Calculating TCO for Modern Compliance Monitoring Software
Unpack the true Total Cost of Ownership (TCO) for compliance monitoring software. Factor in licenses, implementation, training, maintenance, and ROI savings for
Run Maturity Assessments with GRADUM
Transform your compliance journey with our AI-powered assessment platform
Assess your organization's maturity across multiple standards and regulations including ISO 27001, DORA, NIS2, NIST, GDPR, and hundreds more. Get actionable insights and track your progress with collaborative, AI-powered evaluations.
Check out these other Gradum.io Standards Comparison Pages
UL Certification vs CMMI
Compare UL Certification vs CMMI: Safety testing & marks (UL) vs process maturity (CMMI). Boost compliance, cut risks, drive excellence. Discover differences now!
TISAX vs TOGAF
Unlock TISAX vs TOGAF: Automotive cybersecurity standard meets enterprise architecture powerhouse. Compare compliance, risks, strategies & implementation for supply chain & IT success. Choose wisely!
PCI DSS vs SAMA CSF
Compare PCI DSS vs SAMA CSF: Unpack key differences in payment security vs Saudi financial cyber frameworks. Gain compliance strategies, maturity tips & best practices for resilient ops. Read now!