Tag Archives: Chris Harner

Critical Point examines COVID-19 and the mortgage credit risk market

In this episode of Critical Point, Milliman consultants Chris Harner and Michael Schmitz discuss mortgage credit risk and market trends in light of the COVID-19 pandemic. This episode is the first in a two-part series on credit risk. The next episode will look at the potential that cyberattacks may increase within the financial sector as a result of the pandemic.

To listen to other episodes of Critical Point, click here.

Examining cyber risk in emerging markets critically

This episode of Critical Point focuses on cyber risk in emerging markets and what managing that risk look like in countries like South Africa. Milliman’s Chris Harner and David Kirk discuss cyberspace issues that are at the forefront in South Africa and other emerging markets as well as the differences in cyber between various countries, including the U.S. and the U.K.

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Interconnectedness of banking system at risk of cyberattack

The Federal Reserve Bank of New York’s Staff Report No. 909 explores how a cyberattack on several small or midsize banks could create an interbank funding failure. Such a failure would lead to a broader systemic liquidity crisis. Putting cybersecurity tools and policies in place at individual banks would not address the interconnectedness of the entire banking ecosystem. However, employing a thorough modeling approach that takes into account the potential points of cascading failures would help decision makers understand the interconnectedness of their risks, as Milliman’s Chris Harner, Chris Beck, and Blake Fleisher discuss in their article “Cyberattacks could cripple U.S. financial system.”

The Three R’s to understanding the complexities of cyber risk

Cyber is proving itself to be the ultimate enterprise risk, encompassing not only information technology, but also risks involving vendors, people, legal questions, and reputation, all while moving with stealth and a velocity that is extremely difficult to cope with.

What often flies under the radar is the risk posed to companies that are not the direct target of cyberattacks. Who could have predicted that an attack targeting Ukraine would simultaneously affect global shipping, a pharmaceutical company in the U.S., and a chocolate company in Australia? This type of risk event was unprecedented until the release of NotPetya in June 2017.

The attack on Maersk is an example of the law of unintended consequences when it comes to cyber. NotPetya’s impact on the shipping company illustrates the “Three R’s” of complex risks like cyber: robustness, resiliency, and redundancy.

In this article, Milliman’s Chris Harner, Chris Beck, and Blake Fleisher view Maersk’s experience and response to NotPetya through the lens of the Three R’s.

Translating cyber risk into a language the board understands

For many senior executives today, the jargon of cybersecurity may feel like hieroglyphics, a mysterious language that requires translation. Additionally, there is a lack of consensus on how to categorize cyber within a risk taxonomy. The insurance sector often views cyber as a financial risk, specifically a subset of insurance risk due to underwriting of policies. Banks may view cyber as a type of operational risk, while other industries may see it altogether as a strategic or standalone risk.

This lack of a common vernacular creates a communication barrier between cybersecurity experts and the board. To bridge that gap, a new approach is required that makes it possible for stakeholders on both sides of the table to speak the same language. In this paper, Milliman’s Chris Harner and Chris Beck discuss the language of cyber and why it’s important to translate this complex, technical language into financial terms.

Critical Point explores the global significance of cyber risk

A cyberattack has the potential to disrupt the world economy, but a new risk management paradigm can help protect against vulnerabilities for insurers and businesses. In this episode of Critical Point, Milliman’s Chris Harner and Chris Beck discuss the interconnectedness of cyber risk. They explore issues insurers need to understand concerning its interconnectedness and what measures companies can take to manage cyber risk.

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