Recent stats on cyber attacks
Cyber attacks and financial stability
A cyber attack can affect financial stability when:
- A major wholesale payment system and a large retail payment system are attacked at the same time, so that neither can provide their services, for example, over a 24-hour period.
- There is a major data corruption at a custodian bank and one of the large Central Securities Depositories.
- There are direct attacks on parts of the wider infrastructure that the financial system relies upon, such as the electrical grid.
- Retail consumers and broader society distrust the safety and soundness of parts of the financial system [either] because of a few very significant cyber-attacks or many very frequent successful smaller attacks on financial institutions or on financial markets infrastructures.
The future of financial stability and cyber risk
By: Jason Healey, Patricia Mosser, Katheryn Rosen, Adriana Tache – Columbia University, Brookings Institute
The role of macroprudential policy
Kashyap and Wetherilt suggest the following regulatory responses to address cyber risk:
- Conduct cyber stress tests that explore common vulnerabilities that may amplify the impact of a cyber shock.
- Plan for system-wide disruption by setting appropriate recovery expectations for the delivery of critical economic functions
- Encourage firms to avoid common vulnerabilities and to make more diverse infrastructure or software choices
Some principles for regulating cyber risk
Authors: Anil K. Kashyap, Anne Wetherilt
From: University of Chicago, Bank of England