Survey: Cybersecurity top risk priority for banks worldwide

Cybersecurity is the top risk priority in 2023 for most banks across the globe, although credit risk may grow in importance if economic conditions continue to deteriorate, according to a recent survey of chief risk officers by the Institute of International Finance and Ernst & Young. Seventy-two percent of bank CROs surveyed listed cybersecurity as a top priority for the next 12 months. Credit risk was the second most cited priority, although the report’s authors noted that could change if the global economy weakens in coming months. Other frequently cited risk priorities for 2023 included climate and environmental risk (36%), regulatory implementation (34%) and operational resilience (28%).

Looking ahead over the next five years, CROs said they would focus on six risk areas: cybersecurity, credit risk, geopolitical risks, climate and environmental risks, operational resilience and transformation risks. Asked what skills would be needed for risk management in coming years, respondents said data science (51%), cybersecurity (50%), AI-based risk model management (36%), climate change (29%), operational resilience and business continuity (28%), data modeling (26%), governance risk and controls (18%), credit risk (15%), machine learning (15%) and emotional intelligence (10%).