New IDC Financial Insights Survey Indicates Cautious Continued Investment in Enterprise Risk Management Solutions Despite Market Apprehension ; Cloud risk management solutions gaining consideration among leading banks
FRAMINGHAM, MA – July 12, 2010 – IDC Financial Insights today announced the availability of a new report, Best Practices: 2010 Survey of Senior Risk Managers — Technology Implications for Vendors in a New Risk Management Environment (Document #FIN223915, July 2010). The study – based on a series of interviews with senior risk managers at tier 1 and tier 2 banks – reveals that more than 40% of respondents indicated their bank will materially increase spending on risk in 2010. While positive, this number suggests that risk is paramount, but overall capital is still precious. As a result, senior risk managers will struggle to fulfill the need to improve processes that include data, analytics, and reporting to meet increased regulatory requirements while dealing with limited investment capital.
"In the aftermath of the financial crisis and recession of 2008 and 2009, risk managers are facing a new reality of issues, ranging from disparate databases to new regulatory demands in a tighter credit market," said Dana Wiklund, research director, IDC Financial Insights’ Global Risk Management practice. "There is now a universal focus on enterprise risk management because of higher levels of business model oversight by regulators and investors. There is also increased stress on operational processes that deal with technology, compliance, and data security. Over the next couple of years, banks will need financial technology tools that widen their view of risk and risk interdependencies."
Key findings from this study include the following:
* Enterprise risk management is now getting more attention from internal (boards) and external (regulators) parties than ever before.
* The overall economy still has question marks, which is increasing the pressure on consumers and commercial customers to make payments – stress on delinquency is still front and center.
* With the focus on speed, accuracy, and efficiency, cloud or hosted risk management solutions are gaining more and more consideration by financial institutions. When asked about whether the institution is looking to replace in-house solutions with hosted solutions over the next 12 months, 25% of respondents gave a positive answer.
* According to the survey results, 58% of respondents are concerned about increased levels of systematic risks over the next 12 months.
"There is still an air of risk apprehension among risk professionals that is driven by a global economy that is struggling out of recession," stated Wiklund. "While regulatory pressure is increasing and the overall risk environment is still tenuous, this survey shows that financial institutions will proceed cautiously with investment in FinTech solutions through 2010 into 2011."
This IDC Financial Insights report contains the findings from 12 key questions posed to senior risk officers among a select group of nationally regulated tier 1 banks and state and federally regulated tier 2 banks within the United States. The goal of this survey was to gather first-hand industry intelligence from leading risk management practitioners regarding a number of important risk issues and trends across the enterprise.
Join the discussions in the IDC Financial Insights Community; read Dana Wiklund’s blog here.
For additional information about this study, or to arrange a one-on-one briefing with Dana Wiklund please contact Sarah Murray at 781-794-3214 or firstname.lastname@example.org. Reports are available to qualified members of the media. For information on purchasing reports, contact email@example.com; reporters should email firstname.lastname@example.org
About IDC Financial Insights
IDC Financial Insights provides independent research, custom consulting, and detailed multiclient studies on the technology issues and challenges facing the financial services industry. Its global research covers topics of strategic importance to corporate and retail banks, insurance carriers, and asset management, securities, and brokerage firms. In addition to the United States, local practices in Asia/Pacific, Canada, Europe, and Latin America add in-depth regional viewpoints. IDC Financial Insights is headquartered in Framingham, Massachusetts, USA. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-fi.com [http://www.idc-fi.com], email email@example.com, or call 508-620-5533. Visit the IDC Financial Insights Community at http://idc-insights-community.com/financial [http://idc-insights-community.com/financial].