It’s the first time in the seven-year history of the DTCC Systemic Risk Barometer Survey that geopolitical risk has surpassed cyber risk, with 23 per cent of respondents citing it as their major concern.
“Political uncertainty around the world continues, including ongoing negotiations over Brexit, trade wars between the US and China, and tensions in the Middle East,” said Michael Leibrock, DTCC managing director and chief systemic risk officer.
“At the same time, while the US continues one of its longest periods of economic growth, vulnerabilities are emerging domestically and abroad. The strong performance of the US economy should not create complacency. Any reversal or slowdown within the US economy could have a negative impact on global growth and possibly financial stability.”
Cyber risks were a close second, with 22 per cent of respondents citing it as the top risk to financial stability.
“As the frequency and sophistication of cyber attacks [continue] to rise, resilience has become the new top priority on industry and regulator agendas – and rightly so,” said Stephen Scharf, DTCC managing director and chief security officer.
“Emerging technologies continue to advance at a rapid pace and the continued growth of interconnectedness risk means cyber security risk isn’t a national problem; it is a global problem with national implications, which requires a coordinated response across national borders.”
