Cyber Securing Cross-border Financial Services: Calling for a Financial Cybersecurity Action Task Force (Revised)

Abstract

Cyber risk can underlie the next financial crisis. Increasing trade policies on cross-border financial services have been implemented to manage cyber-security concerns. Simply complying with the fragmented policies can cause unintended consequence for business and can even result in new cyber threat. This study develops a taxonomy to understand the effect of the trade policies for cyber-securing the cross-border financial services. The analysis reveals that a Financial Cyber-security Action Task Force, where both public and private sectors are involved, is needed to create and promote cyber norms to balance innovation and systematic cyber risk within cross-border financial systems.