Systemic Threats and Strategic Gaps: Insights from the 2025 FIS Risk Survey

pAs the nature of systemic risk in banking shifts, financial institutions are being forced to re-evaluate their frameworks for identifying, modeling, and acting on emerging threats. The latest FIS-commissioned survey conducted by CefPro highlights a major shift: geopolitical risk now tops the agenda, surpassing even cybersecurity and AI. In this interview, FIS leaders Steven Claxton and David Hough discuss how this shift is influencing risk strategies, particularly in how banks define and operationalize risk appetite statements.

Claxton and Hough emphasize the importance of real-time scenario simulation capabilities, noting that while most banks are updating their risk frameworks, many still lack the tools or cadence to respond to fast-moving global events. Surprising gaps in balance sheet optimization and operational risk awareness, including emerging people risks, show that many institutions are underprepared for the complexity ahead. This conversation is a wake-up call for banks to modernize governance, data infrastructure, and decision-making processes in the face of an increasingly volatile world.