Risk Data Preparedness Low, But Rising, Survey Finds

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.