GEÓ VOICE: Bloomberg Survey Reveals Geopolitical Risk is Top of Mind for Market Participants

Fragmented risk assessments

As markets navigate an increasingly unpredictable global landscape, the survey showed geopolitical risk is a rising priority, with over one third of respondents (34%) deeming it their top concern in the next 1-3 years. Beyond immediate exposures, firms are broadening their attention to encompass secondary impacts, such as supply chain vulnerabilities (19%), while also gearing up to address emerging risks associated with AI and cybersecurity (19%).

While risk teams are keen to manage these complex emerging risks, the survey showed that many firms struggle to confidently assess traditional financial risks. For example, respondents are fairly divided on the current state of market liquidity, with nearly half (43%) saying overall market liquidity has not changed in the past six months, but 18% are stating it is worse and 23% are stating it is better. Similarly, firms are taking divergent approaches to enhance their credit risk frameworks in response to market events of the past few years. Nearly a quarter (26%) are still considering making changes, while another quarter are looking to automate manual tasks (24%), add additional early warning indicators (21%) and conduct scenario analysis (21%).