About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Poll Results: Operational Risk and Cost Top List of Concerns for RDR Readers

Subscribe to our newsletter

Operational risk and the desire for greater cost savings are the key issues driving financial institutions to invest in their data management infrastructure, according to the latest results of our reader poll. This result is unsurprising really, given the focus on doing ‘more for less’ in the current financial climate.

What is perhaps more surprising is that regulation and compliance are not affecting these projects, despite the recent increase in regulatory scrutiny and predicted increase in compliance spend. Not a single respondent to the Reference Data Review poll highlighted regulation and compliance as a driver for investment in data management. Also out of the spotlight were reputational risk and M&A, each failing to garner any votes as priorities driving data spend.

Operational risk topped the list with 50% of the vote, closely followed by cost savings at 33%. The remaining 17% was attributed to the ‘other’ category, which one can only assume means factors such as improvements to client servicing and the desire to improve data quality.

The obvious reason for this result is that the reduction of operational risk and cost are easier wins when championing the issue of data management within an institution. Senior management’s strict scrutiny of ROI for projects in the current environment means data management projects must provide tangible metrics such as cost savings to get the green light.

The reduction in headcount over the last six months across institutions also means that they have to find alternatives to people to throw at the problem and automation and data centralisation are apparent solutions.

The results of the poll confirm that risk is very much a concern in the market, as noted by a number of recent research reports into the area of data management. But it is surprising that regulation is not a key concern, despite the high profile that regulators are maintaining at the moment. Perhaps the results will tell a different story in six months’ time, once the regulatory ball gets rolling and the market is faced with the prospect of coping with increasingly strict oversight policies.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Sponsored by FundGuard: NAV Resilience Under DORA, A Year of Lessons Learned

The EU’s Digital Operational Resilience Act (DORA) came into force a year ago, and is reshaping how asset managers, asset owners and fund service providers think about operational risk. While DORA’s focus is squarely on ICT resilience and third-party dependencies, its implications extend deep into core operational processes that are critical to market integrity, investor...

BLOG

LemonEdge Seeks to Fill Tech Gap in Private Fund Accounting

As private markets and assets grow in importance to institutional investors, so are the challenges they face; not least of all their data processes. A report by Dynamo Software in February found that the biggest challenges faced by accounting professionals in private equity, venture and hedge funds were tech and data-related; manual data entry and...

EVENT

RegTech Summit New York

Now in its 9th year, the RegTech Summit in New York will bring together the RegTech ecosystem to explore how the North American capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Regulatory Data Handbook – Second Edition

Need to know all the essentials about the regulations impacting data management? A-Team’s Regulatory Data Handbook is a great way to see at-a-glance: All the regulations that are impacting data management today A description of each regulation The impact each will have from a data and data management perspective Messages from sponsors with products related to...