BlackRock Inc. Chief Executive Officer Larry Fink warned on Friday that financial markets are ignoring underlying risks, which means there could be a "big correction" if a major surprise world event occurred.

Fink, head of the world's largest asset manager, said the amount of risk in the financial system is comparable to 2007 levels. He said that consistently low volatility in the stock market, as well as the overall strength of the global economy, may mean markets are not accounting for that risk as much as they did in the past.

“If there is a major event, which I don’t foresee anything, but if there is one, we could have a big correction," he said at the annual meeting of the Institute of International Finance.

All three major U.S. stock indexes have been on an extended rally this year, repeatedly setting new record highs, as investors anticipate expanded business activity thanks to a lighter regulatory road and potential tax cuts.

A stock market correction is defined as a fall of at least 10 percent from the high point of the last 52 weeks.

Fink spoke during a panel discussion alongside the CEOs of JPMorgan and Morgan Stanley -- Jamie Dimon and James Gorman. All three were generally optimistic about the economy, although they highlighted several significant risks.

Fink said there is no evident economic reason for a major spike in volatility in the near future.

"Over the long horizon, I think the world is a great place to be," he said.

But all three CEOs found ample room to criticize the White House and the U.S. Congress for failing to take any major steps to boost the nation's economy.

Dimon said the steady if not spectacular U.S. economic growth has occurred "in spite" of the failure in Washington to act.

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