Central banks need to “reflect on the challenges to their traditional tools and emergency plans”
Europe’s systemic risk watchdog has warned that a single cyber incident could escalate from operational disruption into a major liquidity crisis across Europe.
The European Systemic Risk Board (ESRB) oversees banks, insurers, asset managers, financial market infrastructures and other financial institutions.
A cyber incident could “create disruption on such a scale that it has the potential to have serious negative consequences for the internal market and the real economy,” the ESRB warned, in a report that gamed both malicious and accidental incidents.
Systemic Cyber Risk: What’s the Culprit?
The report, published in February, was revisited by Computer Business Review this week apropos growing concerns about software supply chains.
In it, the ESRB particularly emphasised “insufficient industry oversight of third party suppliers and the supply chain” as among the most prominent risks.