MNI BRIEF: Cyber, Climate Global Stability Threats - Lagarde

Climate change and cyber threats are the two most prominent new threats to financial stability globally, European Central Bank president and European Systemic Risk Board (ESRB) chair Christine Lagarde said in a speech Wednesday.

“The ESRB can map how climate risk impacts millions of firms and what this means for the exposures of our most important financial institutions, Lagarde said. “It can also assess the system-wide impacts from different paths that climate change or the transition might take.[Based on this evidence, we now need to work on policy options.

“For cyber incidents, the ESRB will soon present steps for a framework to ensure a coordinated and rapid response from public financial authorities.”