Addressing Systemic Cybersecurity Risk

In 2018, the JSIS research team conducted an exploratory investigation into the use of financial systemic risk as an analogy for hypothetical systemic cybersecurity risk regime. Their institutional assessments and evaluations research addressed new ways in which cybersecurity may be seen in terms of systemic risk, how it could be defined and analyzed, and which institutions and countries are most relevant to systemic cyber risk and mitigation efforts. Their report ends with suggestions on how models to address financial risk may be transposed into potential models to mitigate systemic cyber risk. Specifically, that the indicators of systemic financial risk developed in the Third Basel Accord can be applied to systemic cyber risk, as well as methods such as stress testing to measure resilience, limiting damage, and systemic risk taxation. They conclude that by examining the risk mitigating institutions that exist in the financial sector, similar institutions in the tech industry may refine their strategies to mitigate systemic cyber risk.