Accenture: The Evolution of Risk Technology
Posted: 19 May 2014
Financial institutions have a complex relationship with technology. They need to constantly remain at the cutting edge of innovation to maintain competitive advantage, yet at the same time, investing in IT can also have unintended consequences and may involve multiple barriers towards benefit realization. Architectures can become unwieldy and overly complex, impeding a firm’s ability to implement effective change. The external pressures of the regulatory agenda are the primary driver for current IT expenditure. This leaves far less discretionary funding for investment in new technologies that could create future competitive advantage.
As financial institutions develop their infrastructure, they must carefully manage the trade-offs between the benefits of successful technology innovation and the inherent risks. There is no such thing as a perfect or risk free technological solution – each comes with its own set of challenges. Technological evolution, much like its biological counterpart, is not a static or predictable process.