Financial Risk Manager Part 1

Explanation

Cyber risk is specifically defined as the potential for adverse consequences arising from unauthorized access, use, disclosure, disruption, modification, or destruction of information systems, digital assets, or data. This definition directly addresses the core elements of cybersecurity threats.

Analysis of each option:

• Option A: Correct - This is the precise definition of cyber risk, covering all key aspects including unauthorized access, data breaches, system disruptions, and destruction of digital assets.

• Option B: Incorrect - This describes reputational risk rather than cyber risk. While cyber incidents can affect reputation, the definition focuses on reputation impacts rather than the technical aspects of cybersecurity.

• Option C: Incorrect - This describes operational risk, which is broader and includes various types of operational failures, not specifically focused on cybersecurity threats.

• Option D: Incomplete - The option appears to be cut off, but based on the context, it likely refers to model risk or data quality risk, not cyber risk.

The SWIFT hacking incident mentioned in the question perfectly illustrates cyber risk, as it involved unauthorized access to financial systems leading to significant financial losses.