The FINMA Risk Monitor 2024 serves as a key instrument used by the Swiss Financial Market Supervisory Authority to assess current and emerging challenges affecting the financial sector. Published annually, the report provides both financial institutions and the public with a clear overview of the most relevant risks.

In 2024, the spotlight is on two main issues: cyber threats and market volatility. These topics are particularly critical as they directly impact the stability and resilience of the Swiss financial system. A sound risk analysis is essential to define appropriate protective measures and manage risks effectively.

Cyber threats have become one of the most significant risks facing the financial sector. FINMA emphasizes the increasing complexity of cyberattacks, particularly as financial institutions process highly sensitive and valuable information.

The most frequent attack types include phishing, ransomware, and DDoS attacks. The Risk Monitor stresses the importance of robust cybersecurity measures, frequent system updates, and above all, employee awareness and training. Human error remains a common vulnerability that attackers continue to exploit.

Market volatility continues to present a substantial challenge—particularly in light of geopolitical uncertainty, economic instability, and sudden market movements.

FINMA highlights that these fluctuations can significantly affect investment performance and liquidity flows in financial institutions. Effective risk management strategies, rapid adaptation capabilities, and sufficient liquidity reserves are crucial to mitigating the effects of volatile market conditions.

Regulatory frameworks play a vital role in safeguarding the financial system against both cyber risks and market instability. The Risk Monitor 2024 underscores the importance of not only complying with existing regulations, but also adapting quickly to new requirements—especially in the fields of data security and emergency preparedness.

Regular audits and security assessments are essential to verify compliance. FINMA also encourages industry collaboration and exchange of best practices to enhance sector-wide resilience.

Switzerland has stepped up its efforts to counteract global cyber threats in recent years. The 2024 Risk Monitor highlights the importance of adopting international security standards and fostering cross-border collaboration to secure the domestic financial sector.

Swiss institutions increasingly rely on a combination of preventive and reactive measures, supported by the Federal Office of Communications and other national bodies. By promoting a strong security culture, Switzerland strengthens both its digital sovereignty and its standing as a trusted international financial center.

Technological innovation is a key enabler for reducing risk in the financial industry. FINMA’s report emphasizes the role of artificial intelligence (AI) and machine learning in processing large datasets to detect anomalies and potential threats.

In addition, advanced encryption and blockchain technologies are improving data security and transaction trustworthiness. While these tools increase efficiency and protection, institutions must apply them strategically and in compliance with data protection regulations.

Beyond security concerns, cyberattacks also have serious economic consequences for the financial sector. Inadequate protection can result in financial losses, reputational damage, and legal liabilities.

According to the 2024 Risk Monitor, global economic losses from cyberattacks amount to billions of Swiss francs annually. A well-structured cyber risk management strategy can significantly reduce exposure and costs—making cybersecurity not only essential but also economically prudent for long-term business continuity.

Looking ahead, FINMA identifies several trends that will shape risk management in the coming years. In particular, the evolution of cybersecurity strategies remains a top priority. The financial sector must remain agile and continue to invest in research and innovation to stay ahead of emerging threats.

Furthermore, ESG-related risks (Environmental, Social, and Governance) are expected to gain importance and be more tightly integrated into risk assessments. The convergence of technological innovation and sustainable practices is seen as a key lever to securing the future of the financial system.