From March to July 2006, AIM Software conducted a Global Data and Risk Management Survey of 1,027 financial institutions in 77 countries. The report provides in-depth insight into global trends and developments in the financial industry. Key issues such as risk management, Basel II, higher data quality, outsourcing and the integration of straight-through processing solutions are on the top of the agenda for financial institutions and will continue to shape IT investments over the next few years. Key findings are featured here.

Figure 1: The main motivation for implementing risk management in financial institutions is to comply with regulations. Survey results indicate that improved efficiency is no longer considered a side effect of risk management: Fifty-three percent of the respondents named it as an important driving force for implementing a risk management solution. Institutions are starting to see risk management expenditures as a benefit, not just a cost.

Figure 2: The management of basic data (51 percent) and price data (45 percent) were named as the major objectives of reference data management, followed by the management of corporate actions (31 percent) and the opening of instruments (34 percent).

Figure 3: Eighty percent of the 1,027 respondents stated that they already have a strategy in place for credit risk. Seventy-four percent claimed to be prepared for operational risk management, closely followed by market risk, with 73 percent. Only 9 percent said that they do not yet have any risk management strategy in place.

Figure 4: Although 22 percent of those interviewed still rely on proprietary solutions to meet their needs, the number who prefer to buy a data management solution grew considerably from 2005 to 2006 (22 percent). A reason for this trend might be the wider range of standardized data and risk management solutions now offered in the market and hence the larger awareness of this topic.

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