Next financial crisis may stem from cyberattack or geopolitical shock, RBI governor says

The next financial crisis may originate from a geopolitical event, cyberattack or technological failure rather than from banks or the financial sector, Reserve Bank of India Governor Sanjay Malhotra said on Saturday, calling for stronger system-wide resilience against a new generation of interconnected risks.

“Risks are increasingly exogenous, cross-border and interconnected,” Malhotra said in a speech at the Fifth Kautilya Economic Conclave. “To strengthen systemic resilience, we must aim to better understand the network of dependencies and contagion channels and make scenario analysis a cornerstone of risk management.”