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Saturday, July 24, 2010

Financial institutions urged to make risk management technology a priority

Financial institutions need to make more use of risk management technology to improve their processes behind decision making and performance management, a new survey has claimed.

According to research by Oracle Corporation, nearly half of the respondents do not have the tools to assess performance management and risk together.

Nearly three-quarters said that their IT infrastructure was not capable of utilising stored data to provide a full risk assessment.

Additionally, almost half expressed a lack of confidence in the accuracy of data related to risk.

Nazif Mohammed, vice-president EMEA, Finances Services at Oracle, said: “Financial institutions must integrate risk and finance to provide a solid foundation for the future. This research highlights that there is still a long way for financial institutions to go to confidently manage their information.

“Outdated or irrelevant data hinders effective decision-making and performance. Without complete visibility into the business, financial institutions will continue to be unable to react to market conditions as they occur.”

Further findings from the study showed that only 18 per cent of respondents could deliver risk management analysis in real time.

The survey questioned more than 200 finance professionals and a further 200 plus financial technology executives from across Europe.

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