Technology, operational and regulatory risks are combining to form a trio of risks that many trading firms are only partially addressing, according to SunGard.
While many organizations have put a priority on controlling financial exposures such as credit, market and liquidity risk, recent market events have highlighted the need to mitigate technology, operational and regulatory risks which can also have significant negative financial and reputational impacts. In response, SunGard has developed a new service specifically designed to address this trio of risks.
Drawing on SunGard's cross-functional expertise in business and technology, the service applies a proprietary methodology to assess the vulnerability of a firm's trading operations to these risks and measures their potential impact. Having highlighted and prioritized each risk element, SunGard provides a roadmap of practical actions to help mitigate them, including recommendations for the best implementation approach and assistance with execution where required.
By using SunGard's proven methodology and deep domain expertise, the service helps firms ensure their trading operations do not jeopardize future growth and profitability, helping turn risk management into a competitive advantage.
"Brokerage firms will likely spend over $15 billion over the next few years in compliance with major regulations affecting the global securities industry. Yet, many sell-side firms are not only unsure of how these regulatory changes will impact the trade lifecycle, but are also concerned about how to manage the technology implications." - Dushyant Shahrawat, senior research director, CEB TowerGroup
"While financial exposures have been front of mind for trading firms to address, technology, operational and regulatory risk can also negatively impact a firm's performance. SunGard is committed to helping its customers address this trio of risks as part of a holistic approach to risk management." - Jeffrey Wallis, managing partner and president, SunGard Consulting Services