Although the last two years has been challenging for financial service firms, almost eight out of ten operations professionals said inadequate budgets are directly resulting in compromised IT resiliency, according to new research by software provider ITRS Group.
The survey had responses from 305 executives or those that led operations teams across North America, Europe and Asia Pacific.
The majority or 94% also note that significantly increasing volume of data due to digital transformation is compromising real-time analysis and creating storage issues.
This has resulted in over half of financial institutions experiencing at least a full business day of unplanned down time each year.
Operational resiliency is not a new issue, but regulators like the Bank of England, the Financial Conduct Authority and Prudential Regulation Authority have been finetuning recommendations since 2019. Their efforts have culminated in a set of rules to take effect in March 2022.
This means that institutions including banks, building societies, designated investment firms, insurance firms, e-money, and payment services firms will be obliged to identify, map, and set impact tolerances for important business services
“For financial institutions, operational resilience is fast becoming a ‘grey swan’ issue – a potentially significant event whose impact is widely underestimated. Insufficient understanding of the risks that poor operational resilience presents will create potentially fatal blind spots for firms,” says Guy Warren, CEO at ITRS Group.
He adds, “The current landscape represents a do-or-die crossroads: prioritising IT resilience has never been more important. With the rate of digital transformation only set to increase, the industry’s epidemic of outages will continue to accelerate, unless drastic change takes place.
Incremental change isn’t enough; firms must overhaul their current structures completely, ensuring the importance of operational resilience is instilled across the entire firm’s operations from the top down. This can come in many forms, from increased allocation of funding to giving more power to internal players responsible for operational resilience.”
©Markets Media Europe 2021