Geopolitical risks, trade tensions, inflation and cyber risk are the most significant threats to the financial services ecosystem in the coming year, a recent survey finds.

Specifically, 68% of survey respondents cited geopolitical risks and trade tensions as a top threat, up from 49% last year, as tensions around the world continue to impact global markets, according to the results of the annual Systemic Risk Barometer Survey of the Depository Trust & Clearing Corporation ( DTCC ).

Meanwhile, 61% of survey respondents identified inflation as a top threat, up from 34% last year, which represents the most significant jump across all risks. Respondents cited unknowns around how long inflationary pressures may last, as well as the impact of monetary policy and supply chains as key reasons behind their concerns.

For 47% of the respondents, cyber risk is a top risk, a decrease from 59% last year, driven by the growing sophistication of threat actors, the proliferation of new technology adoption and an increasingly interconnected marketplace.

“The dramatic increase in concerns around geopolitical risks and trade tensions, inflation and US economic slowdown reinforces how quickly the threat landscape evolves and the importance of regularly monitoring the external environment to gain intelligence into potential shocks to market stability,” says DTCC chief systemic risk officer Michael Leibrock. “As a result, firms must continually review their risk management practices and procedures, conduct scenario planning exercises and ensure their operating structure is nimble to protect themselves and the broader industry.”

Nearly three years since the start of the pandemic, most respondents no longer consider Covid-19 a top threat to the industry as case numbers decline and vaccine availability continues to increase.

“The results of our latest survey provide important insights for DTCC and our clients to engage in industry-wide discussions on opportunities to share best practices and partner on ways to mitigate risk,” says DTCC systemic risk executive Adrien Vanderlinden.