Cyber attack fears fuel industry collaboration
Written by Scott Thompson
Sixty one per cent of FS sector risk managers believe the probability of a high-impact event in the global financial system has increased during the past six months, according to The Depository Trust & Clearing Corporation’s (DTCC) latest Systemic Risk Barometer Survey. Cyber risk is the number one concern globally, with 70 per cent of all respondents citing it as a top five risk. In North America, concerns were even higher with 77 per cent identifying cyber security as a top five concern. “When it comes to fighting cyber risk specifically, we’re seeing a lot of market participants collaborating to a greater degree than in the past. More and more firms are aware of how information sharing can help prevent and minimise incidents while making it more expensive for hackers to be successful. This is one area where resources are being allocated,” says Mark Clancy, CEO at Soltra, a joint venture between DTCC and the Financial Services Information Sharing and Analysis Center (FS-ISAC).
Geopolitical risk and the impact of new regulations were identified as the second and third highest risks globally. Many respondents also commented on concerns related to market liquidity. In response 72 per cent of all respondents indicated their firms have increased the amount of resources dedicated to identifying, monitoring and mitigating systemic risks over the past year. The survey revealed that more firms are becoming aware of interconnectedness risk and how the failure of one firm can ripple through the global economy. “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,” says Michael Leibrock, managing director and chief systemic risk officer at DTCC.