JWG Group released a report warning on a large systemic technology risk blind spot that financial services regulators and firms should address by, for example, collaborating with technology firms on new regtech standards in advance of cloud and data crises.
JWG’s CEO, PJ Di Giammarino, said in a statement: “Can a bank run its lending portfolio without loan data? Catastrophic data loss is the big risk to financial services that firms’ and regulators’ radars are just starting to register but is growing fast as the industry shifts infrastructure and data into the cloud. Regulators must bring the industry to the table to think more deeply about the value of data to their enterprise and how to account for the risks.”
Speaking in a personal capacity, Francis Gross, senior advisor for the European Central Bank, said in a statement: “In a hyper-networked world, technology itself generates risks which the current frameworks and cultures are ill-equipped to identify and address. Industry and authorities need to understand and accept that a collective problem is emerging and that we need to address it together in a comprehensive manner. Public and private sector strategies must align on common solutions, such as infrastructures, informed by further independent study.”
Richard Harmon, managing director for Financial Services at Cloudera said in a statement: “Cloud is a game-changer. It can help accelerate the move to digital operations and enable firms to innovate at speed. At the same time, it also has significant implications for how companies view their operational risk in the new hybrid, multi-cloud world. This shift to new cloud models presents many new operational complexities and regulators are just beginning to address specific concerns in their recent regulatory guidance.