Emerging Risk Trends
Key Takeaways
Regulatory and Political Risk
In the United States, regulatory priorities may shift under the Trump administration, creating uncertainty for SEC oversight.
In the United Kingdom, the Financial Services Growth and Competitiveness Strategy 2025 seeks to balance regulation with industry expansion.
Governments are diverging on AI regulation, increasing compliance complexity for firms operating across multiple jurisdictions.
Cybersecurity and Technology Risks
System failures and supply chain vulnerabilities have gained attention following the Microsoft and CrowdStrike event in July 2024.
Risk and compliance frameworks must keep pace with the increased adoption of emerging technology, in particular Gen AI. Increased instances of deepfake fraud within asset management.
ESG and Climate Risk
ESG and DEI-related litigation is on the rise in the United States, with regulators and state attorney generals emboldened by the Trump Administration’s promise to dismantle these policies and discourage related investment strategies.
In the United Kingdom, firms must comply with new sustainability disclosure requirements, climate transition planning, and ESG reporting obligations.
The Task Force on Nature-related Financial Disclosures will mandate sustainability reporting from 2026, affecting firms starting in 2025.
