Understanding Cybersecurity Risk in FMI Using HPC
Gurdip Kaur, Ziba Habibi Lashkari, Arash Habibi Lashkari · 2022
Financial market infrastructures (FMIs) represent a network of financial institutions that allow financial transactions to take place and impart financial stability to the market. It includes payment systems, central security depositories, security settlement systems, central counterparties, and trade repositories. All these components perform multiple tasks such as making payments, settling payment securities, trading, safekeeping, accounting, and controlling the market&s;s security. This chapter examines the importance of financial market infrastructures and elaborates its essential components used to handle financial transactions and their security. It explores the high-performance computing (HPC) and its integration to FMIs to transform the financial industry by speeding up financial activities in the business and reducing fraudulent transactions. With the soaring benefits of integrating HPC into FMI, financial risks also come into picture. There are six main categories of financial risks in FMI that are equipped with several sub-categories of systemic, legal, credit, liquidity, operational, and custody and investment risks. All these financial risks pose several cybersecurity related issues that exploit cybersecurity objectives such as confidentiality, integrity, availability, accountability, and authenticity. Moreover, this chapter provides a descriptive as well as pictorial mapping of financial risks with identified cybersecurity issues. Finally, cybersecurity risks faced by FMI are introduced with comprehensive details on risk assessment, analysis, monitoring, reporting, and mitigation. Following are the main contributions of this chapter: Introducing financial market infrastructures and characterizing its relationship with high-performance computing. Identifying current cybersecurity issues related to HPC in FMI and bringing forward the less discussed cybersecurity issues. Mapping financial risks faced by FMI with security objectives to pin down cybersecurity issues in various FMI risks. Presenting cybersecurity risks faced by financial institutions, especially financial market infrastructures. Instigating cybersecurity risk assessment, analysis, monitoring, reporting, and mitigation in FMI.