Top Risk Concerns for 2021

Financial institutions and their directors have to navigate a rapidly changing world, marked by new and emerging risks driven by cyber exposures based on the sector’s reliance on technology, a growing burden of compliance and the turbulence of Covid-19.

At the same time, the behavior and culture of financial institutions is under growing scrutiny from a wide range of stakeholders in areas such as sustainability, employment practices, diversity and inclusion and executive pay.

A new AGCS report highlights some of the most significant risk trends for banks, asset managers, private equity funds, insurers and other players in the financial services sector, as ranked in the Allianz Risk Barometer 2021, which surveyed over 900 industry respondents: Cyber incidents, pandemic outbreak and business interruption are the top three risks, followed by changes in legislation and regulation – driven by environment, society and governance (ESG) and climate change concerns, in particular.

Macroeconomic developments, such as rising credit risk and low interest rates, ranked fifth.