Geopolitical risks and trade tensions, inflation and cyber risk will be the primary threats to the financial services ecosystem in 2023, this year’s Systemic Risk Barometer Survey from DTCC has found.
The number of respondents naming geopolitical risk and trade tensions as a high-level threat has risen from 49 to 68 per cent since the 2022 Risk Forecast, while inflation is now considered a key risk by 61 per cent of survey participants — a considerable rise from 34 per cent in last year’s survey.
However, thanks to improvements in cyber security less than half (49 per cent) ranked it as a top threat, compared to 59 per cent in the preceding survey.
COVID-19 is no longer considered an industry threat by the majority of market participants, the report finds.
Michael Leibrock, chief systemic risk officer at DTCC, says: “The dramatic increase in concerns around [these risks] reinforces how quickly the threat landscape evolves and the importance of regularly monitoring the external environment to gain intelligence into potential shocks to market stability. Firms must continually review their risk management practices and procedures, conduct scenario planning exercises and ensure their operating structure is nimble to protect themselves and the broader industry.”
Adrien Vanderlinden, DTCC systemic risk executive, adds: “The results of our latest survey provide important insights for DTCC and our clients to engage in industry-wide discussions on opportunities to share best practices and partner on ways to mitigate risk.”
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