Security

What Is OSCAL? A NIST-Backed Framework for Financial Institutions

The framework is designed to facilitate the creation, exchange and use of security assessment information in machine-readable formats.

BizTech Staff

The Open Security Controls Assessment Language (OSCAL) is a standardized, machine-readable framework developed by the National Institute of Standards and Technology (NIST) to improve the efficiency and consistency of security compliance processes.

For financial institutions, which must comply with a complex web of regulations such as the Gramm-Leach-Bliley Act, the Payment Card Information Data Security Standard (PCI DSS), the Sarbanes-Oxley (SOX) Act and emerging state-level cybersecurity mandates, OSCAL provides a universal language for assessing and reporting security controls.

Traditionally, compliance documentation has been handled manually with word processors and spreadsheets — a process prone to human error, delays and data silos. OSCAL replaces these outdated methods with structured, machine-readable formats that streamline workflows and enable automation.

“OSCAL transforms security information into structured, machine-readable formats,” says Chris DeRusha, director of global public sector compliance at Google. “The goal here is to make these processes more efficient, consistent and ultimately secure by automating what has historically been an entirely manual process.”

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How Does OSCAL Work?

Financial institutions often juggle multiple risk management and compliance frameworks — from Federal Financial Institutions Examinations Council (FFIEC) guidance to SOC 2 requirements. OSCAL helps by standardizing the way security information is represented across systems and processes, reducing duplication and improving reporting.

“OSCAL supports data in XML, JSON and YAML, enabling seamless automation and integration with tools and systems,” says Hart Rossman, vice president of global services security at Amazon Web Services.

The framework includes several core components:

Catalogs: Define security controls
Profiles: Customize catalogs for an organization’s specific compliance needs
Component Definitions: Explain how controls are implemented in systems or services
System Security Plan: Documents an organization’s overall security posture
Assessment Plan and Results: Provide a standardized method for evaluating and documenting control effectiveness

By automating these elements, OSCAL reduces manual errors and ensures consistency across compliance processes — a critical benefit in highly regulated financial environments.

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Why Automation and Interoperability Matter

One of OSCAL’s biggest advantages is its ability to automate repetitive, labor-intensive compliance tasks and enable interoperability between different governance, risk and compliance tools.

For banks and insurers managing diverse systems and third-party vendors, this capability helps break down silos and streamline oversight.

“There’s so much human involvement in these processes that doesn’t need to be there,” DeRusha says. “With OSCAL, institutions can automate repetitive tasks, reduce errors and ensure consistent data handling.”

Automation is particularly useful for time-sensitive activities, such as regulatory audits or board-level reporting. What once took weeks or months to review manually can now be completed in days, accelerating decision-making and reducing the risk of costly compliance gaps.

Additionally, OSCAL’s standardized formats promote interoperability, making it easier to integrate with existing systems and collaborate with auditors, regulators and third-party vendors without significant disruption.

There’s so much human involvement in these processes that doesn’t need to be there.”

Chris DeRusha Director of Global Public Sector Compliance, Google

The Benefits of OSCAL for Financial Institutions

Adopting OSCAL offers several key advantages for banks, credit unions and other financial organizations:

Streamlined Compliance Audits: Machine-readable documentation accelerates audits and reduces resource strain.
Continuous Compliance: Ongoing visibility into security posture helps meet evolving regulatory expectations.
Reduced Operational Costs: Automation cuts down on labor-intensive, repetitive tasks.
Enhanced Decision-Making: Consistent, structured data supports proactive risk management.
Global Standardization: As OSCAL adoption grows, it supports multinational financial institutions managing compliance across borders.

“With OSCAL’s standardized documentation, institutions gain unparalleled visibility into their security posture, enabling better decision-making and proactive risk management,” Rossman says.

Is OSCAL a Requirement?

While OSCAL adoption began with U.S. federal agencies, its relevance is expanding into the private sector. Regulatory bodies and industry groups are increasingly pushing for standardized, automated compliance reporting.

For financial institutions, OSCAL can help align with frameworks such as:

PCI DSS
FFIEC guidelines
ISO/IEC 27001
SOX
State-level mandates, including the New York Department of Financial Services’ Cybersecurity Regulation

Early adoption provides a competitive advantage by reducing compliance costs and preparing organizations for future regulatory shifts.

Getting Started With OSCAL

Implementing OSCAL doesn’t have to be disruptive. Financial institutions can take a phased approach:

Start Small: Convert existing documentation, such as risk assessments or audit findings, into OSCAL formats to gain immediate efficiencies.
Leverage Community Resources: The OSCAL GitHub community offers tools, templates and implementation patterns.
Engage Stakeholders Early: Collaborate with auditors, compliance teams and third-party vendors to ensure smooth adoption.
Integrate Gradually: Align OSCAL with existing GRC platforms to maximize the value of current investments.

“Collaboration is key, especially for institutions implementing OSCAL for the first time,” DeRusha emphasizes.

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