Impacts And Trends In Risk And Regulatory Reporting – COVID-19 And Beyond

AxiomSL’s annual survey gathers perspectives on topics of interest both to clients and the industry at large. The June 2020 survey probed for trends in risk and regulatory reporting, asking questions in three areas:

  • COVID-19 impacts on operations, projects, and planning
  • The two-year outlook on challenges and technology prioritization
  • Progress on data sustainability architectures and control frameworks

Survey respondents represented a cross-section of financial institutions attending the conference including global systemically important banks (G-SIBs), regional banks, and foreign banking operations (FBOs).

Highlights of the Results

AxiomSL’s annual financial industry survey on trends in risk and regulatory reporting including COVID-19 impacts
Remote collaboration is the worst operational pain point due to COVID-19:
Respondents indicated that the Coronavirus crisis had not unduly impacted near-term projects or 2021 budgeting, however it created operational difficulties. By far, the most selected was the challenge of team collaboration while working remotely.

Liquidity and capital regulatory reporting is a focus challenge:
A significant portion of respondents cited the increasing regulatory requirements for liquidity and capital reporting as a main challenge they face over the next two years, with COVID-19 driven regulations viewed as an insignificant factor in that horizon.

Cloud emerges as an operational challenge and technology priority:
In the two-year timeframe, the most cited operational challenges were the companion objectives of eliminating manual processes and improving data and process transparency. However, it is significant that many earmarked transitioning risk and regulatory reporting securely to the cloud both as an operational challenge (third most selected) and as a priority technology (second most selected, after data analytics).

Confidence in data quality and process controls is on the rise:
In stark contrast to previous surveys where many organizations indicated lack of trust in their data, most respondents said they are on track to create sustainable data architectures and have the controls in place to ensure transparent, accurate risk and regulatory reporting processes.

Key Takeaways: Impacts and Trends In Risk and Regulatory Reporting

This report illustrates several overarching themes. Firstly, financial firms must strengthen their ability to collaborate remotely across functional areas to prepare for and meet regulators’ complex and granular mandates. Secondly, to address increasing liquidity and capital requirements they must connect liquidity to credit data. Thirdly, organizations should continue to establish sustainable data architectures that enable connection between critical datasets and analytics that show outcomes reflecting and explaining these connections. Lastly, organizations recognize that now is the time to transition risk and regulatory reporting securely to the cloud to achieve the operational efficiencies demanded by burgeoning global regulatory requirements.

Discover this year’s unique impacts and trends in risk and regulatory reporting in our full report:

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