27 May 2017
Visit www.capgemini.com/worldreports

Credit crisis spurs real-time risk management IT spending - survey

14 July 2009  |  8710 views  |  0 Risk on chalkboard

Over half of financial institutions think they would have been better prepared for the credit crisis had they been able to monitor their exposures and concentration levels in real-time, and many are now belatedly investing in technology to help them do this, according to a survey from Aleri.

The poll of over 250 asset managers, hedge funds, banks and brokerages reveals that 70% of respondents think their firm has a need to manage risk in real-time. Yet just 26.4% of hedge funds and 50% of banks feel they have the appropriate technology to do this.

In addition, the crisis has contributed to 20% of banks and 26.7% of hedge funds cutting back on information technology spending.

However, 55% of respondents say their firms took initiatives immediately following the financial crisis and are now poised to invest in real-time risk management technology.

Don DeLoach, CEO, Aleri, says: "The results are a strong indication of the industry's views on the importance of investing in technology that can deliver critical intelligence as it unfolds. The market today is moving so quickly; real-time technology is the only way to adequately manage risk in the face of unexpected market events."

A recent survey by the Economist Intelligence Unit found that just a third of financial services executives think risk management principles in their business remain sound, with over half conducting or planning a major overhaul of operations.

Meanwhile, a study from Ernst & Young published in December found that, of 48 senior executives from 36 major banks around the world questioned, just 14% have a consolidated view of risk across their organisation.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Data quality key to risk overhaul - survey

Data quality key to risk overhaul - survey

06 May 2009  |  8058 views  |  1 comments
CEP vendors Aleri and Coral8 agree merger

CEP vendors Aleri and Coral8 agree merger

09 March 2009  |  7003 views  |  0 comments
Risk management overhaul tops bank agendas for 2009 - KPMG

Risk management overhaul tops bank agendas for 2009 - KPMG

06 January 2009  |  11895 views  |  3 comments
Crisis exposes banks' weak risk management practices - Ernst & Young

Crisis exposes banks' weak risk management practices - Ernst & Young

18 December 2008  |  12315 views  |  2 comments
Wall Street group issues recommendations for market reform

Wall Street group issues recommendations for market reform

07 August 2008  |  8088 views  |  0 comments

Related company news

 
Download the paper nowvisit www.ebaday.comvisit dh.com

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
12334 views comments | 49 tweets | 78 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
7439 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
6279 views comments | 16 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
6246 views comments | 12 tweets | 20 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job