Download or read book Cyber Risk Market Failures and Financial Stability written by Emanuel Kopp and published by International Monetary Fund. This book was released on 2017-08-07 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cyber-attacks on financial institutions and financial market infrastructures are becoming more common and more sophisticated. Risk awareness has been increasing, firms actively manage cyber risk and invest in cybersecurity, and to some extent transfer and pool their risks through cyber liability insurance policies. This paper considers the properties of cyber risk, discusses why the private market can fail to provide the socially optimal level of cybersecurity, and explore how systemic cyber risk interacts with other financial stability risks. Furthermore, this study examines the current regulatory frameworks and supervisory approaches, and identifies information asymmetries and other inefficiencies that hamper the detection and management of systemic cyber risk. The paper concludes discussing policy measures that can increase the resilience of the financial system to systemic cyber risk.

Download or read book Systemic Cyber Risk and Aggregate Impacts written by Jonathan William Welburn and published by . This book was released on 2019 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt: With some of the largest cyber-attacks occurring in recent years - from 2010 to 2019 - we are only beginning to understand the full extent of cyber risk. As businesses grapple with the risks of cyber-incidents and their imperfect ability to prevent them, attention has shifted towards risk management and insurance. While there have been efforts to understand the costs of cyber-attacks, the systemic risk - a result of risks spreading across interdependent systems - associated with cyber-attacks remains a critical and problem in need of further study. We contribute a theoretical framework that describes systemic cyber risk as the result of cascading, common cause, or independent failures following a cyber incident. We construct a quantitative model of cascading failures to estimate the potential economic damage associated with a given cyber incident. We present an interdisciplinary approach for extending standard sector-level input-output analyses to the cyber domain, which has not been done. We estimate the aggregate losses associated with firm-level incidents, a contribution to risk analysis and computational economic modeling. We use this model to estimate the impact of potential cyber incidents and compare model results to a case with known damages. Finally, we use the model of systemic cyber risk to consider the implications on the growing cyber insurance market and the need for broader cyber policy.

Download or read book Mitigating Systemic Cyber Risk written by Borut Poljšak and published by . This book was released on 2022 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Financial Cybersecurity Risk Management written by Paul Rohmeyer and published by Apress. This book was released on 2018-12-13 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understand critical cybersecurity and risk perspectives, insights, and tools for the leaders of complex financial systems and markets. This book offers guidance for decision makers and helps establish a framework for communication between cyber leaders and front-line professionals. Information is provided to help in the analysis of cyber challenges and choosing between risk treatment options. Financial cybersecurity is a complex, systemic risk challenge that includes technological and operational elements. The interconnectedness of financial systems and markets creates dynamic, high-risk environments where organizational security is greatly impacted by the level of security effectiveness of partners, counterparties, and other external organizations. The result is a high-risk environment with a growing need for cooperation between enterprises that are otherwise direct competitors. There is a new normal of continuous attack pressures that produce unprecedented enterprise threats that must be met with an array of countermeasures. Financial Cybersecurity Risk Management explores a range of cybersecurity topics impacting financial enterprises. This includes the threat and vulnerability landscape confronting the financial sector, risk assessment practices and methodologies, and cybersecurity data analytics. Governance perspectives, including executive and board considerations, are analyzed as are the appropriate control measures and executive risk reporting. What You’ll Learn Analyze the threat and vulnerability landscape confronting the financial sector Implement effective technology risk assessment practices and methodologies Craft strategies to treat observed risks in financial systemsImprove the effectiveness of enterprise cybersecurity capabilities Evaluate critical aspects of cybersecurity governance, including executive and board oversight Identify significant cybersecurity operational challenges Consider the impact of the cybersecurity mission across the enterpriseLeverage cybersecurity regulatory and industry standards to help manage financial services risksUse cybersecurity scenarios to measure systemic risks in financial systems environmentsApply key experiences from actual cybersecurity events to develop more robust cybersecurity architectures Who This Book Is For Decision makers, cyber leaders, and front-line professionals, including: chief risk officers, operational risk officers, chief information security officers, chief security officers, chief information officers, enterprise risk managers, cybersecurity operations directors, technology and cybersecurity risk analysts, cybersecurity architects and engineers, and compliance officers

Download or read book Systemic Cyber Risk written by and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: During recent decades, the global financial system has become more digitalised and interconnected. For its functioning, the real economy requires the financial system to perform a range of key economic functions reliably. These include payment services, securities trading, settlement services and deposit taking, among others. These processes have become increasingly digitalised, creating new and important interdependencies. Hence, the financial system has come to rely critically on robust information and communications technology (ICT) infrastructures and the confidentiality, integrity and availability of data and systems. It follows that key economic functions can be disrupted through cyber incidents that affect the information systems and data of financial institutions and financial market infrastructures. Understanding the impact of such disruptions on financial stability is the focus of this report. Cyber risk is characterised by three key features that, when combined, fundamentally differentiate it from other sources of operational risk: the speed and scale of its propagation as well as the potential intent of threat actors. The interconnectedness of various information systems enables cyber incidents to spread quickly and widely. Some recent incidents have demonstrated actors' ability to penetrate the networks of large organisations and incapacitate them quickly. Cyber incidents can also spread widely across sectors and beyond geographical borders, including to entities which are not the primary target or source of disruption. Malicious cyber incidents are becoming more persistent and prevalent, illustrating the high level of sophistication and coordination that threat actors are able to achieve. The ESRB has developed an analytical framework to assess how cyber risk can become a source of systemic risk to the financial system. The four stages of this conceptual model (context, shock, amplification, systemic event) facilitate a systematic analysis of how a cyber incident can grow from operational disruption into a systemic crisis. In particular, the framework could assist in analysing systemic vulnerabilities that amplify the shock of a cyber incident, and in understanding at which point a cyber incident may become systemic. The ESRB also surveyed its membership to form a view on common individual vulnerabilities across ESRB jurisdictions. Combining these elements, the ESRB has considered a number of historical and hypothetical scenarios. It used these scenarios to try to understand the distinction between severe operational disruption to the financial system, on the one hand, and a systemic crisis, on the other hand.

Download or read book Identifying and Prioritizing Systemically Important Entities written by John Bordeaux and published by . This book was released on 2023-11-20 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report helps the Cybersecurity and Infrastructure Security Agency codify the concept of systemically important critical infrastructure by documenting the work surrounding systemic risks and cyber risks in software supply chains.

Download or read book Cyber Risk Scenarios the Financial System and Systemic Risk Assessment written by Lincoln Kaffenberger and published by . This book was released on 2019 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cyber risk has become a key issue for stakeholders in the financial system. But its properties are still not precisely characterized and well understood. To help develop a better understanding, we discuss the properties of cyber risk and categorize various cyber risk scenarios. Furthermore, we present a conceptual framework for assessing systemic cyber risk to individual countries. This involves analyzing cyber risk exposures, assessing cybersecurity and preparedness capabilities, and identifying buffers available to absorb cyber risk–induced shocks.

Download or read book Systemic Cyber Risk written by David Forscey and published by . This book was released on 2022 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper seeks to provide a common foundation for understanding and addressing systemic cyber risk. Building on prior research, it explores definitions of the problem, underlying contributing factors, and potential policy responses. Although much remains unknown about systemic cyber risk, including its true size and distribution, public and private sector leaders worldwide can and should act now to investigate, reduce, and manage the risk.

Download or read book Could a Cyber Attack Cause a Systemic Impact in the Financial Sector written by Phil Warren and published by . This book was released on 2019 with total page 11 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is not a uniform view of the link between cyber risk and systemic risk: some assume a direct link whereas others query the connection.Beyond nation states, the vast majority of independent cyber attackers are currently unlikely to have the capability to systemically impact the financial sector.The financial sector has a large number of environmental features which are conducive to a systemic cyber compromise.There are no current examples of systemic cyber risk crystallising and impacting the real economy but this does not prove an absence of risk.We conclude there is a credible case to link cyber risk to systemic risk in the financial sector.Recommendations for future consideration include:- Further development of the intelligence-led approach to cyber security. - Policy responses that seek to cut through sectoral, geographical and public/private boundaries. - Organisations should accept that compromises are likely to happen and therefore prioritise response and recovery activities.- Undertake further studies to better understand the relationship between data integrity and authenticity, trust in financial services and the potential for real-economy impact via a cyber attack. - A specific focus on risks associated with third-party dependencies.

Download or read book Solving Cyber Risk written by Andrew Coburn and published by John Wiley & Sons. This book was released on 2018-12-12 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: The non-technical handbook for cyber security risk management Solving Cyber Risk distills a decade of research into a practical framework for cyber security. Blending statistical data and cost information with research into the culture, psychology, and business models of the hacker community, this book provides business executives, policy-makers, and individuals with a deeper understanding of existing future threats, and an action plan for safeguarding their organizations. Key Risk Indicators reveal vulnerabilities based on organization type, IT infrastructure and existing security measures, while expert discussion from leading cyber risk specialists details practical, real-world methods of risk reduction and mitigation. By the nature of the business, your organization’s customer database is packed with highly sensitive information that is essentially hacker-bait, and even a minor flaw in security protocol could spell disaster. This book takes you deep into the cyber threat landscape to show you how to keep your data secure. Understand who is carrying out cyber-attacks, and why Identify your organization’s risk of attack and vulnerability to damage Learn the most cost-effective risk reduction measures Adopt a new cyber risk assessment and quantification framework based on techniques used by the insurance industry By applying risk management principles to cyber security, non-technical leadership gains a greater understanding of the types of threat, level of threat, and level of investment needed to fortify the organization against attack. Just because you have not been hit does not mean your data is safe, and hackers rely on their targets’ complacence to help maximize their haul. Solving Cyber Risk gives you a concrete action plan for implementing top-notch preventative measures before you’re forced to implement damage control.

Download or read book Cyber Risk Scenarios the Financial System and Systemic Risk Assessment written by Lincoln Kaffenberger and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Making of a Cyber Crash written by and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In October 2017, the European Systemic Risk Board (ESRB) set up a group whose objective was to examine cyber security vulnerabilities within the financial sector, and their potential impact on financial stability and the real economy. In its first year, the European Systemic Cyber Group (ESCG) sought to develop a shared understanding of Common Individual Vulnerabilities (CIVs) across ESRB members, and to identify the unique characteristics of cyber risk that could contribute to a systemic event. Building on this work, this paper describes a conceptual model for systemic cyber risk, and aims to: - provide a structured approach that can be used to describe cyber incidents, from genesis through to a potential systemic event; - demonstrate the link between the crystallisation of cyber risk in a firm-specific context (portraying microprudential concerns), and the possible ramifications for the financial system (applying a macroprudential focus); - identify system-wide vulnerabilities and the unique characteristics of cyber incidents which can act as amplifiers, thereby propagating shocks through the financial system; - support the use of historical or theoretical scenario-based analysis to demonstrate the viability of the model; - suggest system-wide interventions that could act as systemic mitigants. Although the model is geared towards disruption arising from cyber incidents, it can also be used for any source of operational disruption (although some elements of the model may be less relevant).

Download or read book Cyber Risk Surveillance A Case Study of Singapore written by Joseph Goh and published by International Monetary Fund. This book was released on 2020-02-10 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cyber risk is an emerging source of systemic risk in the financial sector, and possibly a macro-critical risk too. It is therefore important to integrate it into financial sector surveillance. This paper offers a range of analytical approaches to assess and monitor cyber risk to the financial sector, including various approaches to stress testing. The paper illustrates these techniques by applying them to Singapore. As an advanced economy with a complex financial system and rapid adoption of fintech, Singapore serves as a good case study. We place our results in the context of recent cybersecurity developments in the public and private sectors, which can be a reference for surveillance work.

Download or read book Cyber Risk for the Financial Sector A Framework for Quantitative Assessment written by Antoine Bouveret and published by International Monetary Fund. This book was released on 2018-06-22 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Cyber risk has emerged as a key threat to financial stability, following recent attacks on financial institutions. This paper presents a novel documentation of cyber risk around the world for financial institutions by analyzing the different types of cyber incidents (data breaches, fraud and business disruption) and identifying patterns using a variety of datasets. The other novel contribution that is outlined is a quantitative framework to assess cyber risk for the financial sector. The framework draws on a standard VaR type framework used to assess various types of stability risk and can be easily applied at the individual country level. The framework is applied in this paper to the available cross-country data and yields illustrative aggregated losses for the financial sector in the sample across a variety of scenarios ranging from 10 to 30 percent of net income.

Download or read book Stress Testing for Cyber Risks written by Yogesh Malhotra and published by . This book was released on 2017 with total page 189 pages. Available in PDF, EPUB and Kindle. Book excerpt: To avert the impending global Cyber-Finance Insurance Crisis based upon large-scale commercial reliance upon quantitative models with inherent model risks, tail risks, and systemic risks in current form, this post-doctoral thesis makes the following key contributions: Develops the first known Cyber-Finance-TrustTM framework for Cyber insurance modeling; Develops the first known model risk management framework for Cyber insurance modeling; Develops first known analysis of significant and extreme model risks, tail risks, and, systemic risk; Develops multi-method empirical study of VaR and Bayesian inference for containing model risks; Analyzes Markov Chain Monte Carlo for enabling Bayesian inference to minimize model risk; Develops Cyber insurance portfolio framework to minimize model risks, tail risks, systemic risks; Develops framework for Knightian uncertainty management beyond model risk management.Updated, revised, summary version of the thesis invited for submission by NAIC as:National Association of Insurance Commissioners (NAIC) Expert Paper: The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Updated, revised, summary version of the thesis invited for submission by NAIC as: National Association of Insurance Commissioners Expert Paper:Malhotra, Yogesh, Advancing Cyber Risk Insurance Underwriting Model Risk Management beyond VaR to Pre-Empt and Prevent the Forthcoming Global Cyber Insurance Crisis (June 24, 2017). Available at SSRN: https://ssrn.com/abstract=3081492. Expert Paper prepared and submitted on the request of the National Association of Insurance Commissioners on June 24, 2017.

Download or read book Cyber Risk Management written by Atle Refsdal and published by Springer. This book was released on 2015-10-01 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a brief and general introduction to cybersecurity and cyber-risk assessment. Not limited to a specific approach or technique, its focus is highly pragmatic and is based on established international standards (including ISO 31000) as well as industrial best practices. It explains how cyber-risk assessment should be conducted, which techniques should be used when, what the typical challenges and problems are, and how they should be addressed. The content is divided into three parts. First, part I provides a conceptual introduction to the topic of risk management in general and to cybersecurity and cyber-risk management in particular. Next, part II presents the main stages of cyber-risk assessment from context establishment to risk treatment and acceptance, each illustrated by a running example. Finally, part III details four important challenges and how to reasonably deal with them in practice: risk measurement, risk scales, uncertainty, and low-frequency risks with high consequence. The target audience is mainly practitioners and students who are interested in the fundamentals and basic principles and techniques of security risk assessment, as well as lecturers seeking teaching material. The book provides an overview of the cyber-risk assessment process, the tasks involved, and how to complete them in practice.

Download or read book Cyber Resilience of Systems and Networks written by Alexander Kott and published by Springer. This book was released on 2018-05-30 with total page 471 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book introduces fundamental concepts of cyber resilience, drawing expertise from academia, industry, and government. Resilience is defined as the ability to recover from or easily adjust to shocks and stresses. Unlike the concept of security - which is often and incorrectly conflated with resilience -- resilience refers to the system's ability to recover or regenerate its performance after an unexpected impact produces a degradation in its performance. A clear understanding of distinction between security, risk and resilience is important for developing appropriate management of cyber threats. The book presents insightful discussion of the most current technical issues in cyber resilience, along with relevant methods and procedures. Practical aspects of current cyber resilience practices and techniques are described as they are now, and as they are likely to remain in the near term. The bulk of the material is presented in the book in a way that is easily accessible to non-specialists. Logical, consistent, and continuous discourse covering all key topics relevant to the field will be of use as teaching material as well as source of emerging scholarship in the field. A typical chapter provides introductory, tutorial-like material, detailed examples, in-depth elaboration of a selected technical approach, and a concise summary of key ideas.