Analysis of Cyber Risk in Finance: The State-of-the-Art and Future Research Trends

In the ever-evolving landscape of the digital era spanning 2022–2024, the financial industry finds itself increasingly susceptible to a barrage of cyber threats. Recent attacks targeting financial institutions have raised serious alarms, emphasizing the critical urgency for a transformative overhaul in cybersecurity measures. This chapter discusses on a comprehensive exploration of the cyber risk terrain within the financial sector, delving deep into the multifaceted array of cyber incidents, encompassing data breaches, fraudulent activities, and disruptive events in business operations. The increasing frequency and complexity of cyberattacks have made it essential to significantly boost investments in cybersecurity and risk management strategies. In this chapter, authors unveil the current state of cyber risk in the financial domain, casting a stark spotlight on the pressing need for proactive measures. It also highlights the strategic initiatives implemented by financial institutions, regulators, and government agencies to strengthen resilience and prevent a repeat of the major financial crises that occurred a decade ago.