While US banks are generally well-positioned to handle average modeled cyber risk losses, tail events following a systemic cyber event can lead to significant losses, according to a new report from Fitch Ratings.
The financial impact of a cyber event is often centered around the reported remediation – or, in the case of ransomware, the ransom payment. However, the financial cost of a cyber event is likely to be a good deal more than the headline figures, Fitch said. Additional costs from tail events can include data restoration, investigation and response, regulatory legal fines, and brand damage. Cyber insurance can mitigate some of these costs, Fitch said.
Fitch collaborated with cybersecurity company CyberCube to model the impact of systemic cyber events on the US banking sector under various scenarios. CyberCube’s model focuses on “single points of…
