Spoiler: they mostly involve America and politics.
Based on a survey of global financial industry respondents (no details of methodologies, respondent profiles supplied explicitly) a post-trade market infrastructure for the industry has summarized some risks that could surface in 2025.
First, the top risk, cited by 84% of respondents, was Geopolitical Risk involving concerns that a significant geopolitical event could develop or advance and substantially impact financial markets. This is the third consecutive year that geopolitical risk has been ranked by respondents of the yearly survey.
Second, 69% of respondents had identified Cyber Risk as a top threat, making it the second most cited significant risk. Some respondents had highlighted that concerns in this area are compounded by the geopolitical environment, the rise in the use of emerging technology, and the evolution of cyberattacks.
Other findings
Third, 48% of respondents had ranked “US Political Uncertainty and US Presidential Election Outcome” as a top risk, making it the third highest risk to the industry. Respondents had highlighted the impact that elections can have on market conditions and volatility as a result of potential political and economic uncertainty. (The survey was conducted prior to the US presidential election).
Fourth, 32% of respondents had identified Inflation as a top risk and making it the #4 risk predicted for the coming year in the industry.
Fifth, 31% of respondents indicated “US Economic Slowdown” concerns as a top risk, making it the fifth top risk cited for 2025 by respondents to address worries about geopolitical instability, climate change and cyberattacks on economies.
Finally, 69% of respondents had chosen “FinTech Risk” behind Cyber Risk, worried about technologies such as AI, Machine Learning and Robotic Processing Automation posing the highest potential threats in 2025 as more financial services firms adopt these technologies.
According to Timothy Cuddihy, Managing Director/Group Chief Risk Officer, DTCC, the organization issuing its respondents’ 2025 forecasts: “Firms should regularly update their risk management strategies by conducting scenario planning, reviewing key dependencies, assessing recovery planning, and training employees to understand the risk impacts of these threats” to “continue to evolve our preparations and ensure resilience.”
