Published: February 15, 2017
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. (Viewpoint Paper no. 17-01)
Cybersecurity incidents can cause real harm to the operations and customers of a financial firm. Moreover, firms and regulators widely agree that these incidents can also threaten the stability of the financial system. The next step for regulators and industry is to address those risks. This OFR viewpoint shows how regulators and industry can build on their approaches to cybersecurity to promote financial stability. It describes how a cybersecurity incident could threaten financial stability through three channels: Incidents can (1) disrupt the operations of a financial firm that provides critical services, (2) reduce confidence in firms and markets, and (3) damage the integrity of key data.