## Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment

_IMF Working Papers, June 22, 2018_

## Source details

**Canonical URL:** [Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment](https://www.imf.org/en/publications/wp/issues/2018/06/22/cyber-risk-for-the-financial-sector-a-framework-for-quantitative-assessment-45924)

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## Bibliographic details
- Authors: Antoine Bouveret
- Published: June 22, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484360750.001

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### Key findings and empirical documentation
- Cyber risk is identified as a key threat to financial stability following recent attacks on financial institutions.
- The paper documents cyber incidents for financial institutions worldwide by analyzing different incident types: data breaches, fraud, and business disruption.
- Patterns are identified using a variety of datasets (loss data, operational risk data).
- Keywords and methodological markers include: aggregate loss, business operation, cyber attack, data breach, loss data, operational risk, Poisson distribution, systemic risk.

### Quantitative framework and methodology
- The paper outlines a quantitative framework to assess cyber risk for the financial sector that draws on a standard VaR type framework used to assess various types of stability risk.
- The framework is designed for application at the individual country level.
- The framework uses cross-country data available to the author and applies statistical modeling (including references to Poisson distribution in the methodological keywords).

### Illustrative results and scenarios
- The framework applied to the available cross-country data yields illustrative aggregated losses for the financial sector in the sample.
- Scenarios presented in the paper produce aggregated losses ranging from 10 to 30 percent of net income.

### Policy implications and use
- The framework can be used by supervisors, central banks, and financial institutions to quantify cyber-related losses and to inform risk management and financial stability analysis.
- By adapting a VaR type approach, the framework facilitates scenario analysis and aggregation of cyber losses at country level to support macroprudential assessment.

### Publication and metadata
- Author: Antoine Bouveret
- Publication type: IMF Working Papers, Working Paper No. 2018/143
- Publication date: June 22, 2018
- Pages: 29
- Volume: 2018
- Issue: 143
- DOI: https://doi.org/10.5089/9781484360750.001
- ISSN: 1018-5941
- ISBN: 9781484360750

*Source: Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment, IMF Working Paper No. 2018/143 (June 22, 2018) by Antoine Bouveret.*

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## Content in this bundle

- **Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment, WP/18/143, July 2018**
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_Source: https://www.imf.org/en/publications/wp/issues/2018/06/22/cyber-risk-for-the-financial-sector-a-framework-for-quantitative-assessment-45924_