Can Cyber Risk Affect Financial Stability?

Abstract

This paper addresses cyber risk as a risk that may affect financial stability. Based on the conceptual framework of cyber risk, I’ve highlighted a number of research papers and reports issued by regulators and supervisors that assess cyber risk in terms of its potential to affect financial stability. In the paper, I described a cyber risk scenario that could, in certain circumstances, become a systemic risk.

Keywords

• cyber risk
• systemic risk
• financial stability
• financial market infrastructures
• payment systems