Rising cyber threats and climate change pose concerns for financial stability

Muscat: With the rapid digitisation of financial systems, cyber security concerns present novel challenges to financial stability, the latest CBO’s FSR highlights.

“The rise in cyberattacks, particularly targeting financial institutions worldwide can have systemic consequences if they erode the confidence of the users in the digital delivery channels. The CBO remains vigilant of the cyber-risks, crafting policies to mitigate these risks and safeguard market integrity,” the report added.

Climate change presents another formidable threat, with its far-reaching impacts increasingly felt across the globe.

The urgency of transitioning to a zero-emission economy is paramount, as physical shocks and the transition’s risks loom large.

The CBO plays a proactive role, advising financial institutions to strengthen their risk management frameworks by incorporating climate risks and embracing green financing initiatives.