Quantifi, a provider of risk, analytics and trading solutions, recently hosted its annual trading and risk conference in New York. The event featured speakers from BlackRock, Mizuho, ING Capital Markets, Axonic Capital, Centiva Capital and Lazard. As part of the conference, delegates from across the industry were surveyed on key industry topics.
In today’s rapidly evolving business landscape, managing risk has become a paramount concern for organisations across financial services. As technology continues to advance at an unprecedented pace, firms face significant challenges in effectively managing risk and safeguarding their operations. Among these challenges, several stand out as top technology hurdles that firms encounter.
Key findings from the survey:
- Firms encounter various technology challenges in risk management, including the complexity of risk analytic models and the scarcity of skilled personnel, both representing 27% of responses.
- 31% of respondents recognise the importance of updating internal risk management tools and systems to help enhance risk assessment, make informed decisions, and effectively respond to emerging threats.
- Robust data management and integration (62%) and flexible and customisable risk models (61%) were identified as the top requirements for a risk technology solution. Given the complexity and interdependencies in risk management, robust data management and integration capabilities are essential for advanced risk analytics.
- 31% of respondents highlighted the importance of leveraging cloud-based solutions to improve data integration capabilities, scalability, and cost-efficiency. Cloud solutions allow firms to easily scale their data infrastructure, manage dynamic data volumes, and adapt to changing business requirements with agility.
“The pace of technology innovation in risk management continues to accelerate, presenting both opportunities and challenges. On one hand, advanced technologies such as machine learning, cloud computing and data science offer firms the potential to enhance risk assessment, detection, and mitigation. However, keeping up with these rapid technological advancements requires firms to invest in skilled personnel, adapt their infrastructure, and navigate regulatory and operational considerations to effectively harness the benefits of emerging technologies while managing associated risks,” comments Alexei Tchernitser, Director of Product, Quantifi