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Banks miss IT risk

Banks miss IT risk

(29 February 2008 – Global) A new survey by Ernst & Young has found that most global banks are failing to align IT risk management within the general enterprise risk framework. According to the survey nearly 60 percent of risk programmes are to some degree not aligned with the organisations Enterprise Risk Management (ERM) framework.

If the attitudes of the 150 risk management and IT senior executives that were surveyed are anything to go by, this trend should not continue. This is because 54 percent said that they recognised the importance of aligning IT risk.

With more than 54 percent also saying that they planned to increase spending by between five and 25 percent during the next 12-18 months, the turnaround may well begin in the next couple of years.

Further to this, of the four in every five banks that plan to increase investments, the largest portion will go to new technology and process automation.

Bill Barrett, practice leader, Ernst & Young Technology and Information Practice said that the top-line benefits that result from actionable risk reporting, strategic investments, and enhanced organisational performance are more valuable in the long term to both bank and industry, when compared with cost savings.
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