MAS said in its Financial Stability Assessment released Tuesday that around 80%
of surveyed chief risk officers ranked cyber and operational risk as their top
concern, versus 77% citing geopolitical risk. Market stress from AI-related
overinvestment was flagged by 57% as a new major risk. While geopolitical risk
remains the highest-impact threat, MAS warned that renewed geopolitical tension
or a market reprice of AI profit expectations could trigger broad risk-asset
repricing, fund redemptions and insurer losses, weighing on banks, insurers and
other financial institutions.
