Editing Gramm–Leach–Bliley Act (section)

===Safeguards Rule===
(Subtitle A: Disclosure of Nonpublic Personal Information, codified at {{usc|15|6801|6809}})

The Safeguards Rule implements data security requirements from the GLBA and requires financial institutions to develop a written information security plan that describes how the company is prepared for, and plans to continue to protect its clients' nonpublic personal information. The Safeguards Rule applies to information of any consumer's past or present regarding the financial institution's products or services. The written plan must include:{{citation needed|date=November 2022}}

* Denoting at least one employee to manage the safeguards
* Constructing a thorough [[risk analysis (business)|risk analysis]] on each department handling the nonpublic information
* Develop, monitor, and test a program to secure the information
* Adapting the safeguards as needed with contemporary changes in how information is collected, stored, and used

The Safeguards Rule forces financial institutions to take a closer look at how they manage private data and to do a risk analysis on their current processes. The Federal Register features approaches for risk assessments such as evaluating the likelihood of magnitudes of harm that result from threats and errors and safeguards are commensurate with the risks they address.<ref>{{cite web|last=Cronin|first=Chris|date=December 9, 2021|title=Standards for Safeguarding Customer Information|url=https://www.federalregister.gov/documents/2021/12/09/2021-25736/standards-for-safeguarding-customer-information}}</ref> No process is perfect, so this has meant that every financial institution has had to make some effort to comply with the ''GLBA''.

In December 2021, the Safeguards Rule was updated, amid some controversy,<ref name=TNLR/> by the FTC to include specific criteria requiring financial institutions to introduce new security controls and to increase the accountability of [[Board of directors|boards of directors]],<ref>[https://www.reuters.com/legal/transactional/new-safeguards-rule-how-will-it-impact-financial-institutions-2021-12-09/ "New Safeguards Rule: How will it impact financial institutions?] Alex Koskey and Matt White, ''Reuters'', December 9, 2021. Retrieved November 28, 2022.</ref> with a six-month compliance extension, from January to June 2023, granted for some types of institutions in November 2022.<ref name=TNLR>[https://www.natlawreview.com/article/ftc-delays-safeguards-rule-implementation-certain-financial-institutions "FTC Delays Safeguards Rule Implementation for Certain Financial Institutions"] Mercedes Kelley Tunstall ''[[The National Law Review]]'' Volume XII, Number 331, November 23, 2022. Retrieved November 30, 2022.</ref>