B. Central stresses the need "to improve the monitoring and monitoring of cyber security risks"

The Central Bank said Wednesday that limiting operational risks in the financial sector "is a concern for both regulators and the industry." In the report on financial stability this semester, the organization realizes that in recent years, the risks badociated with cybersecurity have become more relevant. "If IT risks have in common with other operational risks the potential to affect the continuity of financial services, they may entail more serious risks to financial stability, for example by involving theft of money. financial badets or information that could compromise more directly to the entities victims of this type of attacks ", underlined the authority.

In recent years, he said, various jurisdictions are reporting more and more cyber security violations of financial institutions, with material consequences in many cases. "At the local level, the cyber attack suffered by the Bank of Chile on May 24, as well as that reported on November 6 by Banco Consorcio, demonstrate that our financial system is not spared by these events," he said. declared.

Stability Financial Issues and Challenges in Chile

In this regard, he indicated that there are at least five instances where the materialization of cybersecurity risks may threaten financial stability. First, cyberattacks can disrupt the financial services of the institutions involved, be they banks or financial infrastructure. Due to the interconnections between these entities, the disruption could eventually spread to the rest of the financial system. Secondly, cyberattacks can interrupt the normal flow of payments, affecting other institutions, including financial market infrastructures, via the Large Value Payment System (SPAV). Originally, these two channels are primarily related to the traditional concept of cybersecurity as an operational risk. Third, a cyber attack can generate critical information losses for the financial system, including sensitive customer information. Fourth, they can weaken the financial position of a financial institution as a result of a theft of their resources. Fifth, a cyber attack can reduce agents' confidence in the security of the financial system.

"For example, a cyber attack targeting low-value payment systems decreases participants' confidence by inhibiting transactions and ultimately, affecting financial activity.

Incidentally, the impact on financial stability will depend on factors He concluded that "the scale of the attack, the size of the institutions affected and their responsiveness to resume their normal activities," he concluded. [19659003] In this context, he said that some of the upcoming challenges for regulators will need to be re-examined, improving the regulatory and supervisory framework for operational risk management and cyber security. "The above may include incorporation of a greater degree of detail in the rules, in order to reduce the discretion in the implementation of the measures; graduation of requirements according to international standards and best practices; and taking into account cross-cutting risks and impacts on other institutions, "he said.

On the other hand, he stressed that" the monitoring and surveillance of risks related to cybersecurity should be improved. This involves the badysis of new parameters allowing a correct identification and weighting of these risks. Similarly, it must be badessed whether the supervisory capabilities of these subjects are adequate, or whether they need to be perfected or created.

Finally, it is fundamental that private sector financial entities continually examine whether cybersecurity risks to those exposed are well managed. Indeed, not only are they accountable to their customers for the commitments they have made with them, but they are also part of a highly interconnected system. For the rest, it is in their own interest to adequately protect their resources and information, as the realization of these risks entails reputational and heritage costs that may be high.