Number one risk to the broader economy is cyber-risk

Cyber-risk remains the number one overall concern of the financial industry to the broader economy.

A new survey conducted by the US Depository Trust & Clearing Corporation (DTCC) showed that an economic slowdown in Asia was reported by 22 percent of respondents to be the biggest systemic risk to the broader economy. Last year, only one percent of respondents ranked an economic downturn outside of the EU/US as the biggest risk.

A growing focus on macroeconomic risks is further supported by rising concerns on the US and European economy. An economic slump in Europe was cited by 24 percent of respondents as a top five concern in comparison to 17 percent six months earlier. An economic slowdown in the US was ranked as a top five concern for 37 percent, compared to 28 percent six months ago.

A quarter (25 percent) of respondents rank cyber-risk as the single biggest threat and 56 percent rank it in their top five, down significantly from 46 percent and 80 percent respectively, only one year ago.

North Americans are significantly less concerned with the possibility of Britain leaving the EU and the threat of deflation, listed as top five risks by 41 percent and 27 percent of respondents outside of North America, which includes 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. The systemic risk landscape remains dynamic as the industry wrestles with a growing number of challenges that could impact market stability,” said Michael Leibrock, managing director and chief systemic risk officer at DTCC.