- The International Monetary Fund--or IMF--says average annual potential losses from cyber-attacks could be close to 9% of banks’ net income globally, or around $100B. In a severe scenario that figure could go as high as $350B. Here are the report's takeaways:
- Financial institutions are attractive targets because of their role as intermediaries in moving funds, IMF says . "A successful cyber-attack on one institution could spread rapidly through the highly interconnected financial system," it says.
- Estimated losses are several orders of magnitude greater than the present size of the cyber insurance market. Insurance market for cyber risk remains small with around $3B in premiums globally in 2017.
- Coverage is limited, and insurers face challenges in evaluating risk because of uncertainty about cyber exposures, lack of data, and possible contagion effects.
- Strengthening the regulatory and supervisory frameworks for cyber risk is needed, and efforts should focus on effective supervisory practices, realistic vulnerability and recovery testing, and contingency planning.
- Previously: Bank cyber attacks reported in Canada (May 29)
- ETFs: XLF, FAS, FAZ, VFH, UYG, EUFN, FNCL, PSP, IYF, BTO, IYG, RYF, PEX, FXO, SEF-OLD, FINU, IXG, RWW, FINZ, EUFL, JHMF, FAZZ, FNCF, DFNL, EUFS
Original article