Cyber-warfare and cyber-crime are relatively new risks for investors. Potential consequences of large-scale attacks include blackouts and financial chaos. Investors need to assess the possible risks for investments and political stability.
Chapter 7 of Geo-Economics: The Interplay between Geopolitics, Economics, and Investments focuses on globally connected economies, the economic damage caused by successful cyber attacks, and the potential impact of a large-scale cyber attack. Could a successful cyber attack cause a prolonged blackout of a major city or even trigger another financial crisis? If so, how bad would it be? These are the questions addressed in this chapter.