Only 60% of financial firms have cyber risk plans

The survey also revealed the top 10 business risks institutions are facing.

Sixty per cent of financial institutions said they already have gameplans in the scenario risks, lower than the confident 65% in 2021, Aon’s 2023 Global Risk Management Survey revealed.

Moreover, just 20% have quantified their risks, and 28% have developed risk management plans. 

Although the industry saw an average 26% loss of income from the top ten risks, this represents an 8% improvement from 2021.

The survey identifies the top business challenges faced by financial institutions:

1. Cyber Attack/Data Breach
2. Regulatory/Legislative Changes
3. Economic Slowdown/Slow Recovery
4. Cash Flow/Liquidity Risk
5. Technology/Systems Failure
6. Environmental Risk
7. Interest Rate Fluctuations
8. Failure to Attract or Retain Top Talent
9. Damage to Reputation/Brand
10. Business Interruption

“Issues with cybersecurity and compliance regulations can lead to cascading effects, such as the risk of damage to brand or reputation which ranked ninth and business interruption which ranked tenth. We see leading financial services firms constantly evolving to mitigate these risks, with best-in-class organisations implementing advanced data analytics and capabilities to assess, quantify and manage the risks they face today and those expected in the future,” Sucheng Chang, Aon’s head of Hong Kong said in a press release.

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Lee Voon Keong, Aon’s head of Talent Solutions in Hong Kong, on the other hand, highlights the growing concern around talent acquisition and retention.

“The growing interconnectedness of risks in an unstable business environment makes the race to secure skilled talent and upskilling the existing workforce to address these risks more important than ever. With evolving technologies, coupled with an ageing workforce, the growth of financial institutions in Hong Kong will greatly depend on the ability of organisations to attract top talent with the necessary skills and creativity, in order to remain relevant in a competitive market.” Lee said.

Aon’s Global Risk Management Survey, conducted biennially, draws responses from executives representing various industry clusters worldwide. 

The latest survey underscores the critical need for financial institutions to adapt to evolving risks and talent demands in an increasingly interconnected and competitive business landscape.