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/