The impending threat of cyberattacks has cast a shadow of concern over the financial services industry.
According to a recent study from The Depository Trust & Clearing Corporation (DTCC), nearly 61 percent of financial risk managers believe there is a high probability the global financial system will be affected by a “high-impact event.”
The Systemic Risk Barometer Survey also points to the cyberattacks as a key driver behind the rise in industry concerns that have taken place over the past six months.
“Cyber risks appear to be multiplying, while controls to address these risks may not be able to keep up with the continually escalating threats,” one respondent stated in the DTCC’s press release.
Cyberthreats remain a top concern, with 70 percent of the survey’s approximately 400 respondents citing it as one of their top five risks. Among respondents located in North America that number increased to 77 percent.
“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 minimize incidents, while making it more expensive for hackers to be successful. This is one area where resources are being allocated,” Mark Clancy, CEO of Soltra, a joint venture between DTCC and the Financial Services Information Sharing and Analysis Center (FS-ISAC), explained.
According to the DTCC’s survey, companies are doing more to respond to the growing cyber risk presented throughout the industry.
Roughly 72 percent of respondents said that over the past year their firms have increased the amount of resources allocated to identifying, monitoring and mitigating systemic risks.
“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,” said Michael Leibrock, managing director and chief systemic risk officer at DTCC.
“It’s a challenge for many, and we’re committed to partnering with the industry to help mitigate risk whenever we can.”