Innovations in risk management technology have not gone unnoticed, particularly within the financial services sector. A new survey by Deloitte Touche Tohmatsu Limited queried 86 financial institutions globally about the state of their risk management operations.
Among the findings:
- 94% of company boards now devote more time to risk management oversight than five years ago.
- About 40% of institutions are concerned about their ability to manage risk data.
- 62% have risk management program in place, up from 52% percent in 2010, while a further 21% are building one.
- 65% reported an increase in spending on risk management and compliance, up from 55 percent in 2010.
- 58% plan to increase their risk management budgets over the next three years.
So how are financial institutions using technology and operations risk to their advantage? Brinqa CEO Amad Fida recently spoke with American Banker about how banks are using Brinqa’s solution:
“… the software is sometimes used for predictive analysis to help with decision making – for instance, to assess the risks of outsourcing an IT function such as mainframe database administration to China or Brazil. Others use it to prioritize risk problems that need to be fixed, say from a list presented by a regulator. But often, it’s used by heads of technology or operations risk to wrestle funds from heads of finance, credit or market risk.”
One bank executive says it has used Brinqa’s platform to “monitor the state of security across a large bank”
“(It) gives you an understanding of your conditions, like patch management and app security; it helps you get an up-to-date, current view of the controls that would protect you from ethical hackers or from actual hackers.”
One of the key statistics in the survey, however, points out that while awareness of the benefits of a risk management program continues to grow, implementing such a program remains a challenge as less than half of the financial institutions surveyed rated themselves as “extremely or very effective at operational and technology risk.” This underscores the need for a viable solution like Brinqa, a one-stop platform for comprehensive risk aggregation, analysis and reporting, that provides financial institutions with an easy-to-understand view of their risk posture.
Simply put, Brinqa is a risk management solution that financial institutions can bank on.
To read the entire American Banker article “Banks Struggle to Manage Tech, Ops Risk: Survey,” click here.