The biggest challenges to the global financial services sector come from cyber-security risk and emerging technologies, according to a survey of the 180 global financial services experts and Canadian risk executives who attended the Global Risk Institute in Financial Services’ (GRI) annual conference in Toronto on Tuesday.
GRI, a Toronto-based financial services sector research and education organization, focused on the theme “Risk in the age of the industrial internet” at this year’s event.
The topic was fitting, considering the survey’s findings.
Almost half of the executives surveyed cited technology risks as the biggest emerging risk to global financial institutions. Respondents were evenly split between which technological challenges would have the biggest impact: 23% cited cyber security, while the same percentage of respondents believe disruption from emerging technologies pose the biggest risk.
“No industry is immune from the impact of technological disruption, both from a strategic and security point of view,” said Richard Nesbitt, president and CEO of the GRI, in a statement. “It’s critical that financial institutions globally understand the risk of disruption and make the most of the opportunities it presents.”
Other global risks drew less concern, with, for example, 14% of participants citing deflation as a significant risk; 8% referring to asset bubbles; and 8% of respondents thinking the economic slowdown in China is a major risk to global financial institutions.
Also, 84% of respondents agreed that there is a risk of overvaluation in the Canadian housing market.