Cyber risk, broad geopolitical risks and the impact of new regulations are among the top risks facing the global financial system, according to a new survey conducted and published by The Depository Trust & Clearing Corporation (DTCC).
Click here to see the full survey results of the DTCC Q1 2017 Risk Barometer.
Highlights from the survey include:
- Cyber Risk remains the No. 1 systemic risk overall by a significant & expanding margin (vs. previous surveys).
- Cyber Risk exhibited the largest percentage respondent increase of all risks included in the Q1 2017 survey.
- Geopolitical Risk as a broad category, as well as the narrower category of Brexit, appeared frequently in responses -- 68% of respondents selected at least one of these risks, which often were selected in tandem.
- Concerns remain over new regulation and the impact of changes to existing regulation.
- Risk Managers were more concerned about Interconnectedness Risk, Geopolitical Risk and Disruption / Failure of a Key Market Participant than other survey respondents.
- Risks associated with control functions and governance, specifically Sudden Dislocation in Financial Markets, Significant Business Continuity Event and Interconnectedness Risk, were some of the focus areas for this survey (along with Cyber Risk and Geopolitical Risk).
- Looking ahead, expectations of a high-impact event destabilizing the financial system remain muted – as markets were able to function resiliently and in an orderly manner following several unpredictable events that occurred in 2016.
- Majority of respondents continue to increase spending on identifying, monitoring and mitigating systemic risks (which is a continuation of the trend from previous surveys).