Discussion Paper

Quantifying Cyber Risk in the Financial Services Industry


Abstract: The Consumer Finance Institute hosted a workshop in February 2017 featuring James Fox, partner and principal at PricewaterhouseCoopers (PwC) and a leading authority on cybersecurity in the financial services industry. He discussed the importance of measuring cyber risk, highlighted some challenges that financial institutions face in measuring cyber risk, and assessed several leading cyber-risk management methodologies. Fox also provided some recommendations for bank exams and insights into how federal agencies might begin to quantify systemic cyber risk. This paper summarizes Fox?s presentation and is supplemented by additional research.

Keywords: cyber risk; cybersecurity; risk appetite; risk quantification;

JEL Classification: G28; G32; K24; L14;

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Consumer Finance Institute discussion papers

Publication Date: 2018-11-11

Number: 18-3