Bladewatch.com

Finextra

Financial services firms need to make substantial and sustained investments in IT infrastructure if they are to overcome severe underlying weaknesses in their risk management capabilities, according to a report by financial regulatory agencies.

The Senior Supervisors Group (SSG) that comprises watchdogs from seven countries (United States, Canada, France, Germany, Japan, Switzerland, United Kingdom) says that underlying weaknesses in governance, incentive structures, information technology infrastructure and internal controls require substantial work to address.

The SSG report evaluates how weaknesses in risk management and internal controls contributed to industry distress during the financial crisis. Among other failings, it concludes that inadequate and often fragmented technological infrastructures at most firms hindered effective risk identification and measurement.

Found this on the Finextra site and it raised a few thoughts. We need to invest in IT not just in terms of the technology, the nuts and bolts, but the process and the best practice, discussions around disaster recovery or high availability with energy efficiency and end user experience, combined with meeting risk management and compliance issues. Simple steps to improve audit or logging, combined with more efficient use and storage of data can transform the support and delivery function in terms of the end user experience.

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