Cyber risk and financial stability

Dalvinder Singh

The positioning of cyber risk as an exogenous shock is perhaps more controversial, in comparison to other exogenous shocks, since cyber risk could either be seen as an exogenous shock given the nature of some threats external to the financial system, or as an endogenous shock due to threats internal to the financial system. ¹ Interwoven in cyber risk is conflict with it forming part of hybrid wars.