IMF releases publication on cyber risks in financial sector over the world

IMF has released a publication/working paper called 'Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment' highlighting the cyber risks to financial institutions worldwide.

Cyber risk has emerged as a key threat to financial stability, following recent attacks on financial institutions. IMF has released a publication/working paper called 'Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment' highlighting the cyber risks to financial institutions worldwide.

The 29-page publication was published on 22nd June, 2018 and Antoine Bouveret is the author of the publication.

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.

 

(With inputs from IMF)