Cyber Risk Assessment - NYDFS Part 500 Assessment
The New York Department of Financial Services cybersecurity regulation—23 NYCRR Part 500 (commonly mis-cited as "Part 53" or "Part 5")—sets binding requirements for Covered Entities operating under New York banking, insurance, and financial services law. NOXMON assesses your program against every section of Part 500 and uses RISKMON to quantify exposure, evidence your annual certification, and keep you ready to notify DFS within 72 hours.
Compliance Built on Quantified Risk
Part 500 is explicit that a Covered Entity's cybersecurity program must be based on the entity's own risk assessment. NOXMON starts there. We evaluate your environment, threats, and data flows, then model each finding as financial exposure in RISKMON so investment and board attention follow the risks that matter most.
Our analysts map your controls to each Part 500 section—from the written cybersecurity program and policy to MFA, encryption, access controls, and incident response—and identify exactly where you fall short of the regulation and its amendments.
The output is more than a gap list. It is a prioritized remediation roadmap, the documented risk assessment Part 500 requires, and the evidence trail your CISO needs to sign the annual certification of material compliance with confidence.
Core Part 500 Requirements We Assess
- Cybersecurity Program & Policy. A written program and board/senior-officer-approved policy covering the core security domains (§§ 500.2, 500.3).
- Designated CISO. A qualified Chief Information Security Officer responsible for the program and annual reporting to the governing body (§ 500.4).
- Risk Assessment. A periodic, documented risk assessment that forms the foundation of the entire program (§ 500.9).
- Multi-Factor Authentication. MFA for remote and privileged access, expanded under the Second Amendment (§ 500.12).
- Encryption. Encryption of nonpublic information in transit and at rest, or approved compensating controls (§ 500.15).
- Access Controls & Identity. Least-privilege access management and periodic review of user access privileges (§ 500.7).
- Pen Testing & Vuln Assessments. Annual penetration testing and ongoing vulnerability assessments of the information systems (§ 500.5).
- Incident Response Plan. A documented, tested incident response and business continuity plan (§ 500.16).
- 72-Hour DFS Notification. Notification to the Superintendent within 72 hours of a determined cybersecurity event (§ 500.17).
- Annual Certification. Annual certification of material compliance or acknowledgment of noncompliance to DFS (§ 500.17).
The Second Amendment (Adopted November 1, 2023)
Class A Companies
The amendment introduced a "Class A Company" tier for the largest Covered Entities, subject to heightened obligations.
- Independent Audits. Periodic independent audits of the cybersecurity program based on risk.
- Enhanced Monitoring. Endpoint detection and response and centralized logging/monitoring solutions.
- Privileged Access Controls. Automated, password-management and privileged-access controls.
Strengthened Requirements for All
The amendment raised the baseline for every Covered Entity, phased in through 2025.
- Governance & Board Oversight. Greater senior-governing-body accountability and oversight of cyber risk.
- Expanded MFA. Broader MFA coverage across all individuals accessing information systems.
- Asset Inventory. A documented, maintained inventory of information systems and assets.
How RISKMON Supports Part 500 Compliance
- Required Risk Assessment. RISKMON delivers the periodic, documented risk assessment Part 500 mandates—quantified in financial terms using FAIR-based modeling.
- Certification Evidence. A single, auditable evidence trail maps controls to each Part 500 section so your CISO can sign the annual certification with defensible support.
- 72-Hour Notification Readiness. Continuous 24x7 monitoring and tracked findings keep you positioned to determine and report a cybersecurity event within the 72-hour window.
- Board & Governance Reporting. Executive dashboards translate technical posture into the governance and board-oversight reporting the Second Amendment expects.
Assessment Deliverables
- Part 500 Gap Assessment. A section-by-section evaluation of your program against 23 NYCRR Part 500 and its amendments.
- Documented Risk Assessment. The risk assessment required by § 500.9, with each finding quantified as financial exposure in RISKMON.
- Prioritized Remediation Roadmap. A risk-ranked plan with owners, evidence, and timelines tracked to closure.
- Certification Evidence Package. Mapped control evidence to support the annual certification of material compliance.
- Incident & Notification Playbook. Validation of the IR plan and 72-hour DFS notification readiness.
- Board Reporting Package. Executive-ready dashboards for governance and senior-officer oversight.
"Our examiners and our board want different things, and NOXMON gave us one program that satisfies both. RISKMON produced the risk assessment Part 500 requires and the dollar-based reporting our directors actually understand—and we walked into certification season with the evidence already assembled."
Tell us about your project
Our offices
- Houghton
Houghton, MI 49931
(212) 913-9184
info@noxmon.com - New York City
New York, NY 10011
(212) 913-9184
info@noxmon.com