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FRM Part II · FRM Exam Part II · Digital Resilience and Financial Stability: The Quest for Policy Tools in the Financial Sector

A central bank is designing a system-wide cyber stress test. Which feature best distinguishes a macroprudential cyber scenario from a firm-level (microprudential) one?

A macroprudential cyber scenario studies how an incident spreads through interconnections, shared providers and payment systems to affect the whole system. Microprudential tests look at one firm's own resilience, so they miss contagion and common-mode failures.

  1. AIt tests only a single firm's recovery of its own servers
  2. BIt examines how an incident at one entity propagates through interconnections, shared providers and payment systems to affect the wider systemCorrect
  3. CIt measures only the cost of regulatory fines after a breach
  4. DIt assumes that all firms hold identical capital buffers

Explanation

Macroprudential tests focus on contagion and common exposures, such as shared infrastructure, payment-system links and confidence effects. A single-firm recovery test is microprudential. Fines are a narrow cost item, and identical buffers is not a defining feature.

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