When evaluating the top risks for the financial services industry, including cyberattacks, 40 percent have no plan in place to manage such challenges, according to a survey by Aon.
Cyberattacks or data breaches are considered the top risk facing financial institutions worldwide, according to a survey by London-headquartered consultancy Aon.
Other risks ranked in the top 10 include regulatory/legislative changes; economic slowdown/slow recovery; cash flow/liquidity risk; technology/systems failure; environmental risk; interest rate fluctuations; failure to attract or retain top talent; damage to reputation/brand; and business interruption.
No Plan in Place
Currently, only 60 percent of financial institutions have a plan in place to respond to risks, a decrease from 65 percent in 2021. Just 20 percent have quantified these risks with the industry recording a 26 percent average loss of income from the aforementioned issues.
«We see leading financial services firms constantly evolving to mitigate these risks, with best-in-class organizations implementing advanced data analytics and capabilities to assess, quantify and manage the risks they face today and those expected in the future,» commented Sucheng Chang, Aon's head of Hong Kong.
The 2023 edition of Aon's biennial survey was based on responses from 3,000 risk managers, C-suite leaders, treasurers, talent professionals and other executives from 61 countries and territories.
