TORONTO, March 27 /CNW/ - Financial services firms that don't align
information technology risk management with overall risk planning could pay a
hefty price, Ernst & Young says.
Nearly 60% of respondents to a new Ernst & Young survey say their IT risk
management (ITRM) programs aren't necessarily lined up with their overall risk
management plan. Still, 80% of respondents anticipate they will increase ITRM
spending in the next 12 to 18 months. Ernst & Young applauds those
investments, but encourages firms to work on their overall risk management
"You should align all your risk management plans before investing further
in any one area," explains Ernst & Young partner Keith Matcham. "By
integrating your plans, you reduce redundancies, eliminate duplication, drive
down costs and make strategic decisions."
There's no substitute for a well-defined, company-wide risk management
program, Matcham adds. Once that's established, firms can create effective
ITRM processes that actually reduce costs and provide benefits over the long
An effective ITRM framework ensures accuracy, confidentiality,
availability and security. A solid framework also considers the speed of
information developed and shared internally and externally. Cutting corners
could result in significant hits to a firm's reputation and bottom line.
Managing Information Technology Risk: A global survey for the financial
services industry surveyed 150 risk management and IT senior executives at
global financial institutions that all have assets in excess of US$10 billion.
Other key survey findings:
- 40.8% of respondents indicate they do not have effective coordination
of risk and compliance activities.
- More than 40% do not feel their organization was effective in risk
reporting and disclosure, risk and issues management, and trend
- More than 33% say their risk management programs have no common
control library and that there is no common risk language across the
organization (or they are unsure if one exists).
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and
advisory services. Worldwide, our 130,000 people are united by our shared
values and an unwavering commitment to quality. We make a difference by
helping our people, our clients and our wider communities achieve potential.
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