Cyber risk and Asia top systemic risk survey
26 April 2016 New York
Image: Shutterstock
Fears of cyber attacks have dropped significantly in the past year thanks to sustained investment in prevention, according to a Depository Trust & Clearing Corporation (DTCC).
Only a quarter of survey respondents, made up of DTCC’s clients, cited cyber risk as the single biggest systemic risk to the broader economy. Just over half, 56 percent, placed it in their top five.
Notably, these percentages fell steeply from 46 percent and 80 percent, respectively, just one year ago.
One respondent offered some context to the drop off, stating: “Cyber is never going to go away, but it seems the major players are investing heavily in prevention.”
The survey results came as Hermes Investment Management warned that a potential worst-case ‘cybergeddon’ scenario places as much as $3 trillion of global economic value at risk by 2020.
Hermes also predicted a 250 percent increase in the global cyber security solutions market, currently valued at $75 billion.
In stark contrast, fear of an economic slowdown in Asia has leapt to the fore in the minds of the industry over the past year, DTCC found, as 22 percent of respondents now rank it number one, compared to only 1 percent the year before.
“We’re not surprised to see an increase in concerns about the global economy, especially in Asia where we have seen the economy slowdown in China sharply in recent years compared to three decades of mostly double digit growth,” said Michael Leibrock, managing director and chief systemic risk officer at DTCC.
“Interestingly, while cyber risk remains very much top of mind, concerns have decreased over the last year, raising a red flag that firms need to remain vigilant in the face of this persistent threat.”
Only a quarter of survey respondents, made up of DTCC’s clients, cited cyber risk as the single biggest systemic risk to the broader economy. Just over half, 56 percent, placed it in their top five.
Notably, these percentages fell steeply from 46 percent and 80 percent, respectively, just one year ago.
One respondent offered some context to the drop off, stating: “Cyber is never going to go away, but it seems the major players are investing heavily in prevention.”
The survey results came as Hermes Investment Management warned that a potential worst-case ‘cybergeddon’ scenario places as much as $3 trillion of global economic value at risk by 2020.
Hermes also predicted a 250 percent increase in the global cyber security solutions market, currently valued at $75 billion.
In stark contrast, fear of an economic slowdown in Asia has leapt to the fore in the minds of the industry over the past year, DTCC found, as 22 percent of respondents now rank it number one, compared to only 1 percent the year before.
“We’re not surprised to see an increase in concerns about the global economy, especially in Asia where we have seen the economy slowdown in China sharply in recent years compared to three decades of mostly double digit growth,” said Michael Leibrock, managing director and chief systemic risk officer at DTCC.
“Interestingly, while cyber risk remains very much top of mind, concerns have decreased over the last year, raising a red flag that firms need to remain vigilant in the face of this persistent threat.”
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