Front Matter Page
Western Hemisphere and Monetary and Capital Markets Departments
Table of Contents
I. Introduction
II. Cyber Risk
A. Cyber Risk Aggregation and Intertemporal Effects
B. Impact Estimates for Cyber-Attacks
C. Cyber Risk Management
III. Market Failures
A. Information Asymmetries
B. Strategic Complementarities, Coordination Failure, and Externalities
C. Economies of Scale, Barriers to Entry and Risk Concentration
IV. Interactions of Cyber-related Market Failures and Financial Stability
V. Financial Regulation of Cyber Risk
A. Cyber as an Operational Risk
B. Guidelines
VI. Measures to Strengthen Resilience to Cyber Risk
A. Reducing Access Vulnerabilities while Boosting Resilience
B. Lessening Information Asymmetries
C. Designing Effective Policies
D. Address Coordination Failures and Manage Systemic Cyber Risk
References
Boxes
1. Recent Cyber Attacks on the Financial Services Industry
2. Cyber Insurance
3. Approach to Critical Infrastructure
Figures
1. Internet of Things: Devices Connected to the Internet (August 2014)
2. Sources of Threat by Type of Actor (March 2017)
3. Impact, Shock Transmission, and Control
4. Cyber Risk Management
5. Coverage Limits and Effective Risk Coverage
6. Maturity of Software Security
7. Regulatory Architecture for Cyber Risk
Tables
1. Cyber Risk Aggregation Levels
2. Cost of Cyber Events
3. Estimated Annual Costs of Cyber Risk
4. United States: Benefits, Costs, and Economic Net Benefit of Internet Use