Exceptions are consuming 18% of profits - SunGard ePI
15 January 2004 | 3939 views | 0
Despite notable improvements, pre- and post-settlement exceptions are still consuming as much as 18% of profits, according to research among the top 500 financial firms conducted by SunGard eProcess Intelligence.
According to the research, the cost of exceptions is down from the 25% claimed last year.
This year's research found that 55% of exceptions are occurring pre-settlement compared with 45% post-settlement. SunGard says this highlights the need for software that can detect exceptions early in the transaction lifecycle.
However, respondents also saw the potential for reduced exception rates through automation, with 69% predicting a further decline in exceptions over the next two years.
Matt Mandalinci, president of SunGard eProcess Intelligence, says: "Respondents attribute the reduction in exception costs to a prioritisation of operational risk by top management, to better tools for analysis of the cause of exceptions, and to the implementation of applications that automate exception management."