Cybersecurity Risk Supervision

Departmental Papers, September 24, 2019

Source details

Authors: Tamas Gaidosch, Frank Adelmann, Anastasiia Morozova, Christopher Wilson
Published: September 24, 2019
Series: Departmental Papers
DOI: https://doi.org/10.5089/9781513507545.087

This paper highlights the emerging supervisory practices that contribute to effective cybersecurity risk supervision, with an emphasis on how these practices can be adopted by those agencies that are at an early stage of developing a supervisory approach to strengthen cyber resilience.
Financial sector supervisory authorities the world over are working to establish and implement a framework for cyber risk supervision.
Cyber risk often stems from malicious intent, and a successful cyber attack—unlike most other sources of risk—can shut down a supervised firm immediately and lead to systemwide disruptions and failures.
The probability of attack has increased as financial systems have become more reliant on information and communication technologies and as threats have continued to evolve.

Emerging supervisory practices that contribute to effective cybersecurity risk supervision.
Guidance aimed at agencies at an early stage of developing a supervisory approach to strengthen cyber resilience.
Recognition that cyber risk differs from other sources of risk due to malicious intent and the potential for immediate firm shutdowns and systemwide disruptions.
The growing probability of attack driven by increased reliance on information and communication technologies and evolving threats.

Subjects: Cyber risk; Economic sectors; Financial regulation and supervision; Financial sector; Financial sector policy and analysis; Financial sector stability; Information technology in revenue administration; Operational risk; Revenue administration; Technology
Keywords: cyber crime; Cyber risk; cybersecurity risk; data life cycle; DP; DPPP; Financial sector; Financial sector stability; Global; ICT system; Information technology in revenue administration; Operational risk; recovery plan; risk assessments; risk profile; risk supervision; shape firms' cybersecurity capability; supervised firm; technology firm