2025-08-05 –, Florentine A
Cyber threats have evolved into a credible risk to global financial stability. This talk explores why a sophisticated, well-timed cyberattack could exploit ever-present vulnerabilities in IT and information security operations--vulnerabilities that amplify the risk of CVEs--to disrupt those operations and spark the next financial crisis.
Cyber threats have evolved into a credible risk to global financial stability. This talk explores fundamental vulnerabilities that are always present in our IT and information security systems, making those systems susceptible to disruptions that could spark future financial crises. These vulnerabilities amplify the risk that CVEs pose. The vulnerabilities give rise to IT systems that are complex, deeply interconnected, and leveraged, yet assumed to be resilient—until a cyberattack proves otherwise by disrupting critical business operations. Drawing on real-world examples and recent research, the talk illustrates the presence of those vulnerabilities in IT systems and how those same vulnerabilities are also always present in the financial system, making it susceptible to financial crises. The talk closes with a description of similar steps that can build resilience in the financial system as well as in IT and information security systems.
Stacey Schreft is an accomplished macroeconomist with extensive experience in the public and private sectors. She currently serves as Senior Research Scholar at the University of Maryland’s Robert H. Smith School of Business’ Center for Financial Policy, advising on financial system and cybersecurity risk, operational resilience, digital assets, and monetary policy. Previously, Stacey served as Deputy Director for Research and Analysis at the U.S. Treasury Department’s Office of Financial Research. In this role, she led initiatives that significantly enhanced the data and analytics used to assess risks to the financial system. As a member of the Financial Stability Oversight Council’s Deputies Committee, she played a key role in cross-agency risk identification and policymaking. While on detail to the Federal Reserve Board of Governors, she led an effort to strengthen the financial system’s cybersecurity and operational resilience. Prior to the OFR, Stacey held senior leadership positions in the financial sector, first as Director of Investment Strategy at a national registered investment advisor, and later as Chief Economist at an institutional investment management firm. Earlier in her career, she was an officer and economist at the Federal Reserve Banks of Kansas City and Richmond.