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With the development of financial technologies known as FinTech, Cyber risks have become one of the major operational risks faced by financial institutions. For the new emerging sector of FinTech credit, recent research by the Committee on the Global Financial System and the Financial Stability Board (CGFS-FSB (2017)) indicates that Cyber risk is the major operational risk. It is important, however, to realize that Cyber risks differ from typical operational risks. As pointed out by Kashyap and Wetherilt (2019), Cyber risks are special in the way shocks occur as well as their potential impacts after occurrence of those shocks. The specificities of those shocks thus call for specific public policies and regulatory adaptations.
Broadly speaking, there exist two types of...
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