The U.S. Office of Financial Research today posted a blog by Director Richard Berner, entitled, “How to Focus Cybersecurity Efforts on Financial Stability.” In the blog, Director Berner says, cybersecurity breaches can cause real harm to the operations and customers of financial companies. In a new paper in the OFR Viewpoint Series, the OFR describes how a cyber incident could also threaten financial stability through three channels: (1) lack of substitutability, (2) Loss of confidence, and (3) loss of data integrity.
The OFR also posted an accompanying ViewPoint paper, entitled, “Cybersecurity and Financial Stability: Risks and Resilience.” The ViewPoint says firms and regulators widely agree that cybersecurity incidents can threaten the stability of the financial system. Less understood is how to address these risks. In this viewpoint, the OFR looks at how U.S. financial firms and regulators can build on efforts to bolster resilience and recovery.
The blog can be found here: https://www.financialresearch.gov/from-the-director/.
The ViewPoint can be found here: https://www.financialresearch.gov/viewpoint-papers/.
The OFR home page is at: https://www.financialresearch.gov/.
