The Depository Trust & Clearing Corporation (DTCC) today issued its annual Systemic Risk Barometer Survey results, identifying Geopolitical Risks, Cyber Risk, U.S. Political Uncertainty and U.S. Presidential Election Outcome, Inflation and U.S. Economic Slowdown as the top five threats to the financial services industry in the upcoming year.
In addition, 55% of respondents indicated they believe there is high or very high chance that a high-impact systemic event will affect the global financial services industry in 2025.
#1 Risk: 84% of respondents indicated that Geopolitical Risk was of concern, making it the top risk next year. Respondents cited concerns that a significant geopolitical event could develop or advance and substantially impact financial markets. This is the third consecutive year that Geopolitical Risk has been ranked as the number one risk to the industry. It has been listed in the top 5 risks since the Survey’s inception in 2013, as global tensions and conflicts continue to impact markets and performance.
#2 Risk: 69% of respondents identified Cyber Risk as a top threat, making it the second most significant risk to the industry. Cyber Risk was the top advancer across all risk categories this year, up from 50% in last year’s Survey, with some respondents highlighting that concerns in this area are compounded by the geopolitical environment, the rise in the use of emerging technology and the evolution of cyber-attacks.
#3 Risk: 48% of respondents ranked U.S. Political Uncertainty and U.S. Presidential Election Outcome as a top risk, making it the third highest risk to the industry. Respondents highlighted the impact that elections can have on market conditions and volatility as a result of potential political and economic uncertainty. This survey was conducted prior to the U.S. election.
Additionally, 32% of respondents identified Inflation as a top 5 risk, making it the #4 risk for the coming year.
Finally, 31% of respondents indicated U.S. Economic Slowdown concerns as a top risk, making it the #5 risk in 2025. Many respondents noted the potential impacts of geopolitical instability, climate change and cyber-attacks on economies.
In addition to the top five risks, notably, FinTech Risk represented the second highest advancer in risk categories, behind Cyber Risk. When asked what was driving concerns around FinTech, 69% of respondents cited that technologies like AI, Machine Learning and Robotic Processing Automation could pose the highest potential threats in the coming year as more firms adopt emerging technologies to support business objectives.
DTCC conducts its Systemic Risk Barometer survey each year, with its last survey, the 2024 Risk Forecast, published in December 2023.
