Regulatory and business pressures are driving firms to invest in risk management functionality such as on demand analytics capabilities, said Stuart Grant, EMEA business development manager for financial services at Sybase, during his keynote speech at A-Team Group’s Data Management for Risk, Analytics and Valuations conference in London. There has been a serious increase in appetite and budget for these analytics capabilities over the last couple of years and there are solutions out there that enable you to build on existing architecture rather than ripping and replacing, he explained.
Solutions can sit on top of large databases and improve their capabilities by allowing risk teams to perform analytics on the data contained within, thus bringing together both historic and real-time data sets, Grant elaborated. One of these technologies is event stream processing (ESP), where data is stored once but can be analysed as it moves through downstream systems.
Another is the intelligent use of cloud-based technology: “Buy side firms’ core competency is not generally in technology development, it is rather in the knowledge of the markets and in intelligent use of data. This is why cloud technology is appealing to these firms because of the lack of overheads and the resulting improved time to market.”
Technologies such as these are therefore increasing in popularity and in sophistication, as more firms push towards an intraday aggregation of risk data and capabilities for on demand analytics, he concluded.