Cyber risk ‘Trumps’ US election as industry’s top concern

DTCC systematic risk survey finds cyber crime remains top concern for financial services industry.

Cyber risk has trumped the US election result as the industry’s top concern, according to the Depository Trust and Clearing Corporation’s (DTCC) third quarter systematic risk barometer.

The top concern remained cyber risk, with 22% citing it as the single biggest risk to the broader economy and 56% ranking it within their top-five risks.

Half of respondents cited the US presidential election result as a top-five risk, whilst 38% mentioned Brexit and general geopolitical risk as a top five concern.

The DTCC explained financial services firms are continuing to make significant investments in cyber security, as respondents “expressed concerns that the evolving nature and sophistication of cyber attacks could place the industry at greater risk.”

Managing director and chief systematic risk officer at DTCC added: “Several respondents rightfully point to the growing incidence and sophistication of state-sponsored cyber attacks as a particularly worrisome trend that is emerging at the intersection of both areas of risk.”

One respondent said: “A cyber attack against a key market participant could precipitate systemic risk and destabilise markets.”

Fears of a global economic slowdown appear to have slowed amongst those surveyed globally, with results retuning to levels similar to those last year.

However, 42% of respondents stated the likelihood of a high impact financial event occurring over the next 12 months has increased.