Page 39 - Annual Report 2023

ANNUAL REPORT 2023 39

in place to limit potential risks stemming from new because of elections and fragile parliamentary
business practices and technologies. coalitions. In 2024, national elections will be held
in more than 40 countries – including the U.S., UK,
In addition, growing cyber threats, fueled by current Russia, Ukraine, Taiwan and India. These countries
geopolitical tensions, and the increasing reliance represent more than 40% of the world’s population
on third-party service providers underline the need (as well as a disproportionate share of global GDP),
for BKT to stay resilient and ensure continuity of and the results of these elections could significantly
the critical services even in the event of severe reshape the future trajectory of the global economy
operational disruptions. Risk data aggregation and and political alliances.
reporting together with operational resilience (namely
IT outsourcing and IT security/cyber risk) are bank While the risk landscape has evolved further since last
priorities for 2024-2025. year, BKT priorities and corresponding activities set
out in 2022 remain valid overall and still address the
At global level security threats, including cyberattacks main vulnerabilities.
and terrorism, will command greater attention from
banks than direct financial threats. A growing number In the context of BKT priorities for 2024-2025,
of non-financial threats could potentially wreak havoc BKT will strengthen again resilience to immediate
in 2024. These risks are less understood and face macro-financial and geopolitical shocks, as well as
weaker regulation than their financial risk cousins. accelerate the effective remediation of shortcomings
Cybersecurity has risen to the top of this list for many in risk management and make further progress in
risk managers, given the surge in both the number digital transformation and building robust operational
and scope of attacks on private companies and public resilience frameworks.
infrastructure over the past year.
Regarding asset quality, the Albanian banking system
Social unrest and political unease expectations will take reflected the outlook recorded by economic activity
center stage in the U.S., Europe and other countries, globally and in Albania. Asset quality improved