The survey has bought out that currently competition from within the industry and a more complex financial environment outweigh regulatory factors as key considerations for risk management at large financial institutions in China.
For the survey, Celent had conducted in-depth interviews with risk managers from large Chinese banks, securities firms and asset management companies.
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And it revealed that only 11% of large financial institutions believed their existing systems to be meeting their risk management needs.
Further, it has been found out that 100% of the interviewed risk managers recognized the need to improve functionality of their existing risk management IT systems.
The need to improve risk systems was followed by the need to improve business processes and adopting a new risk management framework such as Basel III or Solvency II.
Also, operational risk and market risk were revealed to be major areas of investment for financial institutions. While 38% of firms surveyed were focused on enhancing operational risk, 30% placed priority of strengthening their management of market risk.
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By GlobalDataNeil Katkov, senior vice president, Asia, for Celent remarked, "The survey, sponsored by SunGard, found that, in order to compete effectively on the global stage, and against both foreign and domestic competitors in China, financial institutions need to enhance their risk management capabilities by improving their enterprise-wide analysis of risk management data, improve their technology, build on new frameworks such as Basel III and improve their business processes."
"China’s economic growth has slowed and growth in Europe remains weak. In addition, Chinese risk managers are navigating domestic deregulation, increased trade volumes and trade complexity and expanding business demands. They need to ensure that the risk position is accurately measured, communicated and understood throughout the organization," Richard Zhu, chief operating officer of SunGard China added.
