Key Takeaways
- Digitalization in operations and IT services can increase risks of cyber attacks for U.S. public finance (USPF) issuers if proper vendor risk management is not in place.
- Integration of third-party vendor risks into a comprehensive cyber-defense strategy is an important aspect for an issuer to help reduce the frequency and mitigate the effects of a cyber attack.
- Failure to incorporate these risks into risk-management policies could result in negative rating pressure if an issuer’s practices seem materially weaker than those of peers.
25 Oct, 2021