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Can Cyber Risk Affect Financial Stability?

Author

Listed:
  • Claudiu Ioan Negrea

    (“Costin C. Kirițescu†National Institute of Economic Research, Bucharest, Romania)

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.

Suggested Citation

  • Claudiu Ioan Negrea, 2022. "Can Cyber Risk Affect Financial Stability?," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 368-376, September.
    • Handle: RePEc:ovi:oviste:v:xxii:y:2022:i:1:p:368-376
    as

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    File URL: https://stec.univ-ovidius.ro/html/anale/RO/2022-2/Section%203/26.pdf
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    References listed on IDEAS

    as
    1. Ronald Heijmans & Ms. Froukelien Wendt, 2020. "Measuring the Impact of a Failing Participant in Payment Systems," IMF Working Papers 2020/081, International Monetary Fund.
    2. Ros, Greg, 2020. "The making of a cyber crash: a conceptual model for systemic risk in the financial sector," ESRB Occasional Paper Series 16, European Systemic Risk Board.
    3. Antoine Bouveret, 2018. "Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment," IMF Working Papers 2018/143, International Monetary Fund.
    4. Emanuel Kopp & Lincoln Kaffenberger & Christopher Wilson, 2017. "Cyber Risk, Market Failures, and Financial Stability," IMF Working Papers 2017/185, International Monetary Fund.
    5. Tamas Gaidosch & Frank Adelmann & Anastasiia Morozova & Christopher Wilson, 2019. "Cybersecurity Risk Supervision," IMF Departmental Papers / Policy Papers 2019/014, International Monetary Fund.
    6. Joseph Goh & Mr. Heedon Kang & Zhi Xing Koh & Jin Way Lim & Cheng Wei Ng & Galen Sher & Chris Yao, 2020. "Cyber Risk Surveillance: A Case Study of Singapore," IMF Working Papers 2020/028, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cyber risk; systemic risk; financial stability; financial market infrastructures; payment systems;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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