The asset management industry is approaching an important period of digital transformation, prompting asset managers to focus on effective data and technology risk management. Our latest Top Risk Review H2, featuring our first dedicated Asset Management Analysis, finds that Technology risk has emerged as the second highest concern for the industry, surpassed only by Information Security (including Cyber). This highlights a critical gap between the pace of innovation and firms’ ability to govern and secure their digital ecosystems.
Steve Bishop, ORX Research and Information Director says:
Top three risks interconnected with cyber threats
Information Security, Technology, and Third Party risks top the rankings, forming a tightly linked network of vulnerabilities. Cyber threats and data breaches lead the rankings, while technology risk reflects the strain of adapting to new systems and innovations. Third Party risk highlights the challenges of relying on external providers for critical operations.
Asset managers vs banks: Risk comparison
While both asset managers and banks identify similar top risks, asset managers consistently assign lower materiality scores. Notably, the ranking of Third Party is similar between sectors, but asset managers’ average score of the risk is significantly lower than banking participants. Discussions with asset management leaders suggest that this may be because firms’ TPRM programmes remain relatively immature, e.g. in comparison with the banking sector.
Regulatory Compliance emerges as a higher priority for asset managers, driven by cross-jurisdictional complexity and new requirements such as the EU and UK’s green transition mandates.
Regulatory Compliance emerges as a higher priority for asset managers, driven by cross-jurisdictional complexity and new requirements such as the EU and UK’s green transition mandates.
Looking ahead: 2026 brings persistent volatility
Despite expectations that risk scores will reduce in 2026, uncertainty looms. Responses indicate geopolitical tensions, regulatory complexity, and technology risk remain dominant drivers, alongside rising concerns about Physical Safety and Security linked to climate change and global instability.
ORX members and ORX Lite subscribers can read the latest H2 2025 Top Risk Review to find out the entire risk rankings.
Listen for more insights
Find out more from our ORX Operational Risk Podcast on 'Which risks are top of the agenda for financial services?
ORX Top Risk Review results H2 2025'.
