Today, the assessment that a major cyber attack poses a threat to financial stability is axiomatic— not a question of if, but when. Yet the world’s governments and companies continue to struggle to contain the threat because it remains unclear who is responsible for protecting the system.
Increasingly concerned, key voices are sounding the alarm. In February 2020, Christine Lagarde, president of the European Central Bank and former head of the International Monetary Fund, warned that a cyber attack could trigger a serious financial crisis. In April 2020, the Financial Stability Board (FSB) warned that “a major cyber incident, if not properly contained, could seriously disrupt financial systems, including critical financial infrastructure, leading to broader financial stability implications.” The potential economic costs of such events can be immense and the damage to public trust and confidence significant.
Two ongoing trends exacerbate this risk. First, the global financial system is going through an unprecedented digital transformation, which is…
