New York DFS Issues Critical Guidance on Cybersecurity and AI Risks for Financial Firms

The New York Department of Financial Services (DFS) has released two open letters providing crucial guidance on managing cybersecurity risks, particularly in a "heightened threat environment" and concerning advanced AI models. While not formal rule changes, these recommendations are essential for internal auditors and assurance professionals across all industries to understand, as they highlight evolving regulatory expectations and best practices for robust risk management and resilience against sophisticated cyber threats.