On your marks, get set … We’re all aware of the pressures: Banks need to provide regulators with consistent answers for each requirement or report. A unified view of risk and finance data is the only workable answer. It’s tempting to go with the fastest
and simplest point and open-source solutions – they’re budget-friendly, and you’ll quickly match regulators’ timelines. But are there pitfalls in sprinting off to meet the latest compliance checks without a long-term strategy that aligns IT and business goals?
Open-source solutions aren’t all bad: Companies avoid ‘vendor lock-in’ and the licensing costs associated with proprietary software. But it’s impossible to overlook the potential disadvantages. The most common problems cited by organisations are the lack
of ongoing support and maintenance, poor scalability, problems with upgrading, interoperability and consequential downtime.
The traditional approach of implementing a point solution for individual regulatory requirements is fraught with challenges in the long term, as those internally developed systems typically fall out of synch as the regulation evolves due to new priorities
and lack of adequate knowledge and documentation for the original implementation
So, will such a solution stand up to scrutiny, and will it adapt to a fast-changing regulatory landscape? Consider also that:
- Complexity is increased with multiple systems that become more difficult to maintain.
- Costs add up if many solutions, interfaces and support sets are needed to meet multiple requirements.
- Falling foul of regulators and reputational damage are real risks if there are inconsistencies in the underlying data sets and processes are poorly documented.
According to a
piece on risk and finance integrating, a single, data infrastructure across the enterprise provides a rock-solid yet flexible platform for change and growth.
Holding data at the most granular level ensures that the organisation is ready for every compliance test, while offering consistent workflow, analysis, reporting and consolidated views – from the front and middle office, to operations. Above all, it delivers
a chain reaction in efficiency and lower TCO across the organisation.