Nearly 61% of risk managers at financial services firms believe that the probability of a ‘high-impact’ event in the global financial system has increased during the past six months, according to a new Depository Trust & Clearing Corporation (DTCC) survey.
The survey found that the threat of a cyber attack is the key driver behind the increased concern among risk managers.
Of the risk managers quizzed for the latest DTCC systemic risk barometer survey 70% cited cyber risk as the number one concern globally. In North America, concerns were even higher with 77% identifying cyber security as a top five concern.
Respondents identified geopolitical risk and the impact of new regulations as the second and third highest risks globally, cited by 50% and 41% of all respondents, respectively.
According to the report, European-based respondents ranked geopolitical risk highest, while respondents located in the APAC region or working for APAC firms expressed particular concerns over an economic slowdown outside of the EU/U.S. While, many respondents also commented on concerns related to market liquidity.
Nearly 72% of all respondents indicated their firms have increased the amount of resources dedicated to identifying, monitoring and mitigating systemic risks over the past year in response to these threats.
DTCC managing director and chief systemic risk officer Michael Leibrock said: "The survey is an important tool for identifying current market concerns. I think it’s also a great reminder of the ever expanding list of complex risks companies have to manage.
"It’s a challenge for many, and we’re committed to partnering with the industry to help mitigate risk whenever we can."