Regulation of Cyber Risk in the Banking Sector: A Canadian Case Study

Maziar Peihani
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引用次数: 1

Abstract

Cyber risk is one of the greatest threats facing any modern financial system, a result of increasing dependence on technology and the appeal of troves of personal data to well-equipped hackers. This article examines the governance of cyber risk in the Canadian banking system in the backdrop of the COVID-19 Crisis which has led to a surge in cyber attacks. It argues that the existing operational risk framework, developed by the Basel Accords, is unfit to handle the unique challenges posed by cyber risk. Cyber incidents are unlike traditional operational disruptions in both their dynamism and impact, and are not adequately captured by backward-looking proxies, such as historical losses. There is also a mismatch between the traditional risk-based supervision, which relies on annual risk rating of banks, and the quickly changing cyber profile of regulated entities. The article calls for a paradigm shift in banking regulation such that cyber resilience is set as an explicit regulatory objective for both individual firms and the system as a whole. It outlines a number of strategies which can help banks and regulators navigate and adapt to the ever-changing cyber landscape.
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银行业网络风险监管:加拿大案例研究
网络风险是任何现代金融体系面临的最大威胁之一,是对技术日益依赖以及大量个人数据对装备精良的黑客具有吸引力的结果。本文探讨了在COVID-19危机导致网络攻击激增的背景下,加拿大银行系统的网络风险治理。它认为,由《巴塞尔协议》(Basel Accords)制定的现有操作风险框架,不适合应对网络风险带来的独特挑战。网络事件在其活力和影响方面都不同于传统的运营中断,并且无法通过历史损失等具有历史意义的代理来充分捕捉。传统的基于风险的监管(依赖于银行的年度风险评级)与受监管实体快速变化的网络状况之间也存在不匹配。这篇文章呼吁在银行监管方面进行范式转变,以便将网络弹性设定为单个公司和整个系统的明确监管目标。它概述了一些策略,可以帮助银行和监管机构导航和适应不断变化的网络环境。
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