ECB's Christine Lagarde on Cyber Risk in Financial Systems

But cyber risk is becoming important for financial stability, too.
As forthcoming analysis from the European Systemic Risk Board shows, there are plausible channels through which a cyber attack could morph into a serious financial crisis.
An operational outage that, say, destroys or encrypts the balance accounts of a major financial institution could trigger a liquidity crisis, and history shows that liquidity crises can quickly become systemic crises.
-- Christine Lagarde, President of the European Central Bank, Feb 5, 2020

Full transcript: https://www.bis.org/review/r200205b.htm

Initial news report: $645 Billion Cyber Risk Could Trigger Liquidity Crisis, ECB’s Lagarde Warns
https://www.forbes.com/sites/daveywinder/2020/02/08/645-billion-cyber-risk-could-trigger-liquidity-crisis-ecbs-lagarde-warns/

QOTD - Security & The Business - Which Objective(s) Are You Meeting?

When meeting with security leaders, directors should ask how their cybersecurity plan will help the company meet one or some of these objectives: revenue, cost, margin, customer satisfaction, employee efficiency, or strategy. While these terms are familiar to board members and business executives, security leaders may need guidance on how to frame their department’s duties in the context of business operations.
-- Sam Curry, Chief Security Officer at Cybereason

Src: HBR: Boards Should Take Responsibility for Cybersecurity. Here’s How to Do It 

QOTD - SEC Chair Clayton on Need for Cooperation

Cybersecurity must be more than a firm-by-firm or agency-by-agency effort. Active and open communication between and among regulators and the private sector also is critical to ensuring the nation’s financial system is robust and effectively protected. Information sharing and coordination are essential for regulators to anticipate potential cyber threats and respond to a major cyberattack, should one arise.
-- Jay Clayton, SEC Chair 

Src: Written Remarks before the Committee on Banking, Housing and Urban Development United States Senate, September 26, 2017

QOTD - SEC Chair Clayton on Cyber & Everyday Americans

Cybersecurity touches the daily lives of virtually all Americans, whether it is our accounts with financial services firms, the companies we invest in or the markets through which we trade. 
-- Jay Clayton, SEC Chair 

Src: Written Remarks before the Committee on Banking, Housing and Urban Development United States Senate, September 26, 2017

QOTD - SEC Chair Clayton on Cyber Risk Disclosures

[W]e are continuing to examine whether public companies are taking appropriate action to inform investors, including after a breach has occurred, and we will investigate issuers that mislead investors about material cybersecurity risks or data breaches.
-- Jay Clayton, SEC Chair 

Src: Written Remarks before the Committee on Banking, Housing and Urban Development United States Senate, September 26, 2017

QOTD - Raskin on Cybersecurity as Shared Responsibility

Understanding and dealing with the cyber threat has, due to your efforts, seeped from the IT shop and into the CEO shop.  Responsibility is now shared. In fact, this new shared responsibility, among IT experts, the CEO, and the board of directors, has been the most noticeable trend in governance from my time in the industry, in state government, and in the federal government.  Bankers rarely used to talk to me much about cybersecurity.  Now, this is one topic that comes up every day.
-- Treasury Deputy Secretary Sarah Bloom Raskin

Src: Remarks of Deputy Secretary Raskin at The Texas Bankers’ Association Executive Leadership Cybersecurity Conference