PRMIA is pleased to share the results of an online survey focused on regulatory compliance and the impact of technology.
Risk managers and compliance professionals are pressured by the answers put forth by regulators in the post-financial crisis world. New and more complex regulations in the risk management industry can be overwhelming, and keeping up with these regulations has become an ever-increasing drain on both costs and resources. Global financial software company, Misys, commissioned this study of financial industry professionals to better understand where companies are currently focused, where they will begin to focus, and what companies might do to afford more time to their core functions. Kraig Conrad, PRMIA CEO, shares, “PRMIA and Misys collaborated on this initiative to provide risk professionals worldwide with insight into where competency-building efforts should be focused to ensure efficient and effective compliance. Both of our organizations can provide guidance to achieve this goal.”
Some key points from the survey report include:
- Nearly 85% of respondents indicated that regulatory compliance has had an increased impact on overall business operations in the last 3 years, with more than 55% saying it has increased significantly.
- Risk management practitioners and their organizations have the greatest challenges with clarity in exact requirements of regulations, the cost of complying, and limits on time. Complying within complex organizations further add to the challenge.
- Two-thirds of respondents indicated that the burden of legacy technology is a leading obstacle to information transparency and a more effective risk management program, while more than half cited financial constraints, lack of cooperation across the organization, and resistance to change as other leading obstacles.
- Thirty-percent of respondents expect their IT spend toward regulatory compliance will significantly increase in the next 3 years, and nearly 50% expect it to moderately increase. The greatest area of investment in the next 18 months will be in technology projects for data completeness, data accuracy, and regulatory reporting.