Template-Type: ReDIF-Paper 1.0
Author-Name: Iñaki Aldasoro
Author-X-Name-First: Iñaki
Author-X-Name-Last: Aldasoro
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: Paolo Giudici
Author-X-Name-First: Paolo
Author-X-Name-Last: Giudici
Author-Name: Thomas Leach
Author-X-Name-First: Thomas
Author-X-Name-Last: Leach
Title: The drivers of cyber risk
Abstract: Cyber incidents are becoming more sophisticated and their costs difficult to quantify. Using a unique database of more than 100,000 cyber events across sectors, we document the characteristics of cyber incidents. Cyber costs are higher for larger firms and for incidents that impact several organisations simultaneously. The financial sector is exposed to a larger number of cyber attacks but suffers lower costs, on average, thanks to proportionately greater investment in information technology (IT) security. The use of cloud services is associated with lower costs, especially when cyber incidents are relatively small. As cloud providers become systemically important, cloud dependence is likely to increase tail risks. Crypto-related activities, which are largely unregulated, are particularly vulnerable to cyber attacks.
Length: 45 pages
Creation-Date: 2020-05
File-URL: https://www.bis.org/publ/work865.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work865.htm
File-Format: text/html
Number: 865
Classification-JEL: D5, D62, D82, G2, H41
Keywords: cyber risk, cloud services, financial institutions, bitcoin, cryptocurrencies, cyber cost, cyber regulation
Handle: RePEc:bis:biswps:865