There is a big ecosystem that everyone relies on. Be it the ATM network, exchanges, payments systems, or otherwise: these things must work to make the world go round – that is the people, processes, and technology – are being run efficiently, effectively and safely is another key focus of regulators.
Making sure that the systems work and they are safe is one element, but the great interconnectivity of all of this technology has implications for data and reporting and cybersecurity burdens that are also heavy on the minds of regulators.
The regulatory reporting burden on banks has increased massively in recent years, and is set to increase even further over the next few years. Regulators have focused increasingly on the public disclosure of information to enhance comparability, market discipline and market trading and price formation and on risk data aggregation and reporting.
While the regulatory lens is fitted on various regulatory initiatives on know your customer, sanctions, tax, data protection and the treatment of both retail and wholesale customers, we can anticipate that a sharper spotlight on off-shoring risk and cyber security and resilience will surely be converted into further regulatory requirements on data and technology in due course.
How a firm manages data and technology issues should be on the minds of senior management of firms.
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