The top three risk categories are:
- External risks—these are predominantly the risk of a cyber incident. Banks and insurers cited cyber incidents as the most important risks. Respondents are managing the risk of a cyber incident through:
- continued investments in cyber security
- employee training
- outsourcing some information technology processes
In addition to threats to their organizations, some respondents expressed concerns about a successful cyber attack from Russia on critical infrastructure as retaliation for economic sanctions. - International economic and political risks—these are mainly geopolitical tensions. Asset managers and pension funds cited geopolitical tensions as the most important risks. The most frequently mentioned geopolitical tensions related to the Russian invasion of Ukraine. Respondents reported no or minimal direct exposure to Russia, but they voiced concerns about geopolitical spillovers, such as China:
- supporting Russia and facing economic sanctions
- invading Taiwan
Some were also concerned that greater uncertainty around geopolitical tensions could increase the risk of a price correction in high-yield debt and emerging markets….
