Cyber incidents are escalating in magnitude, sophistication and geopolitical relevance, exposing critical weaknesses in the global financial system. This paper highlights mutually reinforcing vulnerabilities: supply chain/third-party exposure, and heightened systemic risk in rapidly digitalising emerging market and developing economies. The paper also recognises that cybersecurity extends beyond a purely technical concern and has broader macro-financial and economic-security implications. Finally, the paper emphasises a set of measures for financial firms and financial sector supervisors to contain propagation channels, safeguard confidence and reinforce financial stability.
Cybersecurity and geopolitical risks in financial markets
