Cyber risk and the US financial system: A pre-mortem analysis
The work
| Authors | Thomas M. Eisenbach; Anna Kovner; Michael Junho Lee |
|---|---|
| Editors | |
| Type | article |
| Year | 2022 |
| Citekey | eisenbach2022cyber |
Where it appeared
| Published in | Journal of Financial Economics |
|---|---|
| Volume | 145 |
| Issue | 3 |
| Pages | 802--826 |
Identifiers
| DOI | 10.1016/j.jfineco.2021.10.007 |
|---|
Abstract
We model how a cyber attack may be amplified through the U.S. financial system, focusing on the wholesale payments network. We estimate that spillovers of an attack on one of the five most active banks would impair 31% of the network, on average, with some days significantly worse. When other banks respond by liquidity hoarding, forgone payment activity can reach more than 2.5 times daily GDP. A reverse stress test shows attacks on groups of small banks can also impair a significant amount of the network. Interconnectedness through third-party providers and financial market utilities poses additional risks.
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How it got here
| How it got here | import via bibtex |
|---|---|
| Added | 2026-08-04 00:00 UTC |
| Approved by | a person 2026-08-16 15:48 UTC |
Filed under
Cite it as
@article{eisenbach2022cyber,
title = {Cyber risk and the US financial system: A pre-mortem analysis},
author = {Thomas M. Eisenbach and Anna Kovner and Michael Junho Lee},
year = {2022},
journal = {Journal of Financial Economics},
volume = {145},
number = {3},
pages = {802--826},
doi = {10.1016/j.jfineco.2021.10.007},
}
This record lives at https://refs.drheap.org/eisenbach2022cyber/ and will keep doing so.