Asia slowdown and cyber risk top concerns in DTCC poll

Asia slowdown and cyber risk top concerns in DTCC poll

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An economic slowdown in Asia was listed by 22% of respondents in a recent survey by US post-trade giant DTCC as the biggest systemic risk to the broader economy.

The response marks a shift from a year ago when only 1% of respondents ranked an economic downturn outside of the EU/US as the biggest risk.

A US slowdown was ranked as a top five concern for 37% of respondents, up from 28% just six months ago.

Similarly, an economic slump in Europe was cited by 24% as a top five concern, compared to 17% six months earlier.

While cyber risk remained the number one overall concern, with 25% citing it as the single biggest threat and 56% ranking it in their top five, these numbers are down significantly from 46% and 80%, respectively,  just one year ago.

“We’re not surprised to see an increase in concerns about the global economy, especially in Asia where we have seen the economy slowdown in China sharply in recent years compared to three decades of mostly double digit growth,” said Michael Leibrock, managing director and chief systemic risk officer at DTCC.

“Interestingly, while cyber risk remains very much top of mind, concerns have decreased over the last year, raising a red flag that firms need to remain vigilant in the face of this persistent threat.”

The survey also revealed differences regionally in the level of concern towards the various risks.

For example, 62% of North American respondents cite cyber risk as a top five concern vs. 38% of survey participants elsewhere.

They also include the impact of new regulations and liquidity as a top five concern about twice as often as their counterparts in other parts of the world.

Conversely, North American respondents are significantly less concerned about the possibility of Britain leaving the EU and the threat of deflation, which are listed as top five risks by 41% and 27% respectively of respondents outside of North America, including EMEA and APAC.

 “We’ve seen some dramatic shifts in systemic risk concerns over the last 12 months as new threats take on greater prominence in the industry," said Leibrock.

"The systemic risk landscape remains dynamic as the industry wrestles with a growing number of challenges that could impact market stability. The Barometer provides insight into current thinking and is an important tool to drive discussion and dialogue on global risk issues."


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