How Banks Are Rebuilding Risk Strategy in a World of Geopolitical Uncertainty

Event Q&A

Systemic Threats and Strategic Gaps: Insights from the 2025 FIS Risk Survey

Geopolitical instability has overtaken cyber and AI as the top concern for risk managers in banking, according to the latest FIS and CefPro survey. In this interview, Steven Claxton and David Hough unpack the findings and explain how risk appetite frameworks, scenario modeling, and cultural shifts must evolve to meet this dynamic new environment.

Sep 17, 2025

David Hough, Senior Advisor Balance Sheet Management, FIS Global

Steven Claxton, Head of Treasury and Risk Market specialist, Asia Pacific, FIS

Tags: AI and Technology (including Fintech)

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

pAs the nature of systemic risk in banking shifts, financial institutions are being forced to re-evaluate their frameworks for identifying, modeling, and acting on emerging threats. The latest FIS-commissioned survey conducted by CefPro highlights a major shift: geopolitical risk now tops the agenda, surpassing even cybersecurity and AI. In this interview, FIS leaders Steven Claxton and David Hough discuss how this shift is influencing risk strategies, particularly in how banks define and operationalize risk appetite statements.

Claxton and Hough emphasize the importance of real-time scenario simulation capabilities, noting that while most banks are updating their risk frameworks, many still lack the tools or cadence to respond to fast-moving global events. Surprising gaps in balance sheet optimization and operational risk awareness, including emerging people risks, show that many institutions are underprepared for the complexity ahead. This conversation is a wake-up call for banks to modernize governance, data infrastructure, and decision-making processes in the face of an increasingly volatile world.

David Hough Bio

David Hough, FCCA, FCT, is a risk expert with over 30 years’ experience in retail and universal banking, focusing on finance, risk, and treasury. He began his career in Tier 1 finance roles such as planning and forecasting, and regulatory reporting, later moving into the overall product leadership , and subsequently management and large-scale business transformation. in G-SIBs, D-SIBs and domestic deposit takers. He has worked in both the commercial and mutual sectors. For 15 years, David worked as an independent consultant delivering complex global transformations in finance, risk, and treasury, recognized as a natural problem solver, and effective at running large business and technology change teams. And heavily involved in two bank startups through to IPO, this includes setting up the operating model , Initiated ALCO committees, Data Governance and Operational Risk committee, including delivering BCBS 239, in tandem with delivering front to back improvements across his domain expertise. He is a Fellow of both the Association of Chartered Certified Accountants and the Association of Corporate Treasurers.

Steven Claxton Bio

Steven Claxton has a 20+ years accomplished Banking (risk management, valuations, and regulation) career across Asia Pacific and the United Arab Emirates. His responsibility at FIS is leading Treasury and Risk (in Asia Pacific as a Market Specialist, which sees him working directly with Banking clients to adapt FIS’ solutions to their strategic priorities. Steven has worked for systemically important banks such as Standard Chartered Bank and as consultant with KPMG. His experience stretches across value propositions such as capital measurement & planning (ICAAP, Enterprise-Wide Stress Testing), prudential regulation (Basel III, Recovery & Resolution Planning), and behavioural modelling (credit (IFRS9), counterparty credit (xVA), operational, balance sheet (IRRBB) & liquidity). Steven currently sits on the International Actuarial Association’s (IAA’s) Artificial Intelligence Task Force (AITF), where he is leading a work stream on how AI is changing the Actuaries role across the financial sector.