Risk Data Preparedness Low, But Rising, Survey Finds
Deloitte Global research sees increasing challenges, but more effectiveness on risk infrastructure
Compliance with regulatory demands concerning risk data, such as data quality and aggregation, Solvency II, Markets in Financial Instruments Regulation (MiFIR), Options Clearing Corporation standards and others, is proving difficult for some firms, according to a survey of chief risk officers from 71 firms with aggregate assets of $18 trillion, conducted by Deloitte Global from August to November last year.
When naming compliance challenges, 62 percent of respondents said risk information systems and technology infrastructure is extremely or very challenging, and 46 percent said risk data itself is extremely or very challenging.
Although when asked in which areas of risk data and infrastructure their firms are effective, less than half of survey respondents could cite any single category. However, responses to some areas have risen since 2012, in the survey, which has been conducted annually for nine years. Data management and maintenance rose from 20 percent in 2012 to 39 percent last year; data process architecture and workflow logic rose from 23 to 35 percent over the same time, and data controls and checks stayed roughly level, dropping slightly from 33 percent to 31 percent.
Asked about overall concerns with risk technology systems, adaptability to changing regulatory requirements rose from 40 percent in 2012 to 48 percent last year, and lack of integration of systems rose from 31 percent to 46 percent over the same time.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Court case probes open-source licenses as movement stands at crossroads
The Software Freedom Conservancy’s lawsuit against TV-maker Vizio begins trial in California, raising questions about open-source licenses and the risks posed by adhering to them.
Waters Wavelength Podcast: Countdown to T+1
DTCC’s Val Wotton joins the podcast this week to discuss the impending move to T+1 in the US.
Consolidated tape hopefuls gear up for uncertain tender process
The bond tapes in the UK and EU are on track to be authorized in 2025. Prospective bidders for the role of provider must choose where to focus their efforts in anticipation of more regulatory clarity on the tender process.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Waters Wrap: The rise of AI washing… and regulation washing?
The SEC recently levied fines against two investment advisors over “AI washing”. Anthony takes issue with the announcement.
Prepare now for the inevitable: T+1 isn’t just a US challenge
The DTCC’s Val Wotton believes that firms around the globe should view North America’s move to T+1 as an opportunity—because it’s inevitable.
European firms prime for lopsided settlement in North America and at home
With T+1 imminent in North America and increasingly likely to traverse the Atlantic, operations and trading professionals in Europe are fighting on two fronts.
As crypto ETFs become reality, benchmark providers take center stage
The SEC’s approval of the first spot bitcoin ETFs will expose a growing number of traditional market participants to the maturing world of crypto data, a moment that some—such as CF Benchmarks, BlackRock’s benchmark provider—have been eagerly awaiting.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Fighting FAIRR: Inside the bill aiming to keep AI and algos honest