Practical analysis for investment professionals
25 July 2013

Poll: Is Cybercrime against Securities Markets a Systemic Risk?

Posted In: Risk Management

In a poll conducted earlier this week in the CFA Institute Financial NewsBrief, we asked readers whether cybercrime presents a system risk to the securities market.

Poll: Is cybercrime against securities markets a systemic risk?
Poll: Is Cybercrime against Securities Markets a Systemic Risk?

A recent report by the International Organization of Securities Commissions and the World Federation of Exchanges found that more than half of the world’s securities exchanges fought off cyberattacks over the past year and warned that underestimating the severity of this emerging risk could expose securities markets to a black swan event. This week, another report — “The Economic Impact of Cybercrime and Cyber Espionage,” published by the Center for Strategic and International Studies and sponsored by McAfee, the security firm owned by Intel (INTC) — found that cybercrime and cyberespionage are costing the U.S. economy $100 billion a year and the global economy perhaps $300 billion annually. The report also estimated that malicious cyberactivity costs as many as 508,000 jobs in the United States alone.

Given the scope of the issue, we asked readers whether cybercrime against securities markets posed a systemic risk. Our global poll of 593 investors revealed that 83% of respondents believe that it does. For more on the topic of cybercrime and systemic risk, see our recent blog post, “Cyber-Crime Study Warns Securities Markets Could Face a ‘Black Swan’ Event.”

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

About the Author(s)
Lauren Foster

Lauren Foster was a content director on the professional learning team at CFA Institute and host of the Take 15 Podcast. She is the former managing editor of Enterprising Investor and co-lead of CFA Institute’s Women in Investment Management initiative. Lauren spent nearly a decade on staff at the Financial Times as a reporter and editor based in the New York bureau, followed by freelance writing for Barron’s and the FT. Lauren holds a BA in political science from the University of Cape Town, and an MS in journalism from Columbia University.

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