Finance pros shift focus to regulatory risks, cyber threats amid economic uncertainty, report finds
Financial professionals are reassessing their risk priorities, with technology, data, and cybersecurity concerns rising to the forefront, according to a report by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA), released on July 31, 2024.
The "Global Economic Conditions Survey (GECS) for Q2 2024" found that while economic inflation, recession, and interest rates remain the top risk priority overall, regulatory, compliance, and legal issues have become a higher priority for respondents in the financial services sector. Cybersecurity risks have also risen in prominence, ranking as the third-highest risk priority across all sectors.
The survey, which polled 665 individuals, including 463 ACCA members and 202 IMA members, highlights the growing complexity and scrutiny of financial regulations. The shift in priorities comes as financial institutions face increasing pressure to comply with evolving regulatory requirements and mitigate the threat of cyberattacks, many of which are state-sponsored.
Industry-specific risk concerns also varied, with financial services professionals ranking misconduct, fraud, and reputational damage among their top three concerns for the first time. This marks a significant shift, given that fraud and misconduct were previously ranked as the lowest priority despite the rising number of fraud cases in both financial services and the corporate sector.
The report underscores the increasing complexity and interconnectedness of global risks, with financial professionals navigating an unprecedented array of challenges, including new monetary and fiscal policies, the impacts of artificial intelligence (AI) and climate change, talent scarcity, skills gaps, and employee retention.
View the full GECS Q2 2024 report.
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