ABSTRACT
We are in the era of the internet, in which internet and data consumption are inevitable. With the advent of Web 2.0 and Web 1.0, from ordinary men to large corporates, everyone is reaping enormous benefits. As in every case, this wonder of innovation has a dark side. The major challenge that an internet user faces is cybercrime. These are cyber attacks aimed at stealing or destroying users’ private datasets. Financial institutions deal with vast amounts of private data; like any other institution, they are susceptible to cyber-risk. This poses a risk not only to financial institutions but also to their stakeholders. These threats bring massive costs, both direct and indirect. This chapter is categorized into four sections. Section 1 highlights the dangers posed by cyber attacks, the types of cyber-risk and attacks, and the risk of cyber-risk worldwide. Section 2 explains the problems businesses face due to cyber attacks, followed by the financial implications of cyber-risk discussed in section three. The final section discussed a framework for financial institutions’ cyber-risk and security assessments.
