Six in ten (60%) organisations in Ireland’s financial services sector say that cyberattacks or system outages are the biggest operational risk to their sector this year.
This is according to a new survey by Ireland's professional body for compliance professionals, the Compliance Institute, which polled approximately 150 senior compliance experts working primarily in Irish financial services organisations nationwide.
The survey highlights just how significant a threat cyberattacks or system outages have become to the Irish financial services sector. Just one in ten financial firms cited supply chain disruption or staff shortages as a key operational threat, while14% said regulatory changes or uncertainty are the biggest operational risk. An operational risk is the risk of financial losses or disruption to an organisation or business as a result of events, internal failures or incidents that disrupt a business’s’ operations.
Commenting on the survey findings, Michael Kavanagh, CEO of the Compliance Institute said:
“The damage that can be caused by operational risks should not be underestimated. Businesses can face substantial hits to their profits and reputational damage if an operational risk is not tackled and overcome. Recently, a number of high-profile businesses, including the retailer, Marks & Spencer and the car manufacturer, Jaguar Land Rover, have been badly disrupted and impacted by cyberattacks.
Cyberattacks can have catastrophic consequences not just for those whom they are perpetrated against, but for the wider public. We only have to look at the devastation that was caused to patients following the 2021 hacking of the HSE to understand the severity of the crimes.
And although cyberattacks are growing in prevalence and sophistication, there are a myriad of operational risks faced by businesses and financial institutions today. For example, since the outbreak of the current Middle East war, it’s become increasingly clear how disruptive and costly supply chain disruption can be for both businesses and consumers alike. All of these developments serve as a reminder of the importance of being aware of – and ready for – key operational risks.”
While cyberattacks remain a top concern for financial services organisations, almost nine in ten (87%) respondents say they are either “very” or “reasonably” confident that their firm has measures in place to manage this risk. When asked specifically about cyber risk frameworks and incident response plans, 70% of compliance professionals reported being “reasonably confident” in their organisation’s ability to address potential disruption to operations and supply chains, while 17% said they are “very confident.” However, 12% are not very confident, and 1% are not confident at all.
Mr Kavanagh added
“Hackers and cybercriminals are continuously improving their practices, constantly finding new ways of stealing material and outsmarting even the most advanced of security systems. AI, a technology which has developed at a rapid pace in recent years, is now being increasingly used by scammers in their attempts to defraud people. A recent survey[1] by the Compliance Institute found that an overwhelming majority (97%) of compliance professionals in Ireland’s financial services industry believe that criminals are exploiting AI faster than regulators and firms can respond. Unfortunately, this means that the potential for damage from cyberattacks is rapidly increasing, something that compliance professionals in the financial services sector are acutely aware of. So it’s incumbent on us all – consumers, businesses and regulators alike – to keep up to speed on, and to be in a position to withstand, the growing incidence and severity of cyberattacks.”
[1] Compliance Institute Survey Q4 2025
