Addressing cyber risk in financial institutions and in the financial system

Abstract

Regulators and financial institutions must let the financial industry focus on significant systems investments to prevent current and future cyber-infrastructure threats. This paper organises the latest research and views on cyber-risk management to enable insights into the frequency and severity of cyber-risk events, the magnitude of cyber-risk losses, and the best practices methods and frameworks for organising and implementing a cyber-risk management programme. This paper also describes cryptographic best practices and the evolving research on protection against cyberattacks in the coming quantum computing era. The paper concludes that governments must work with their financial market constituents to use one or more of the cyberrisk management frameworks to standardise collecting and reporting on cyber-risk events. Finally, government and industry members must work together to finance and rebuild financial industry infrastructure to enable cyber-risk management solutions.