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Cyber risk remains high on minds of financial market participants: survey
SOME three-fifths of risk managers around the world believe the chances of a high-impact event in the global financial system has increased in the last six months, driven by the threat of a cyber attack.
This was among findings from a survey conducted in September and October by The Depository Trust & Clearing Corporation (DTCC), a US-headquartered company providing clearing and settlement services.
Across a broader group of 400 DTCC clients and international participants, 45 per cent of respondents said that the probability of a high-impact event in the global financial system has increased during the past six months, up from 29 per cent since the last survey was conducted in Q1 2015.
Cyber risk remained the number one concern, with 37 per cent citing it as the single biggest risk to the broader economy - albeit lower than 46 per cent half a year ago.
One respondent said: "Cyber risks appear to be multiplying while controls to address these risks may not be able to keep up with the continually escalating threats."
Other risks that respondents highlighted included geopolitical risk, the impact of new regulations, an economic slowdown outside the European Union (EU) and the US, and US Federal Reserve monetary policy.
European-based respondents tended to rank geopolitical risk highest, while respondents located in the Asia-Pacific region or working for Asia-Pacific firms were concerned about an economic slowdown outside of the EU and the US, DTCC said.
Over-regulation had caused a lack of liquidity in markets, which will exacerbate volatility, one respondent said.
Similar to half a year ago, 72 per cent of all respondents said their firms have increased the amount of resources dedicated to identifying, monitoring and mitigating systemic risks over the past year.