Global IT Spending Forecast for Risk Management: A Growth Opportunity for Business and Technology
Authors: Guillermo Kopp, Rodney Nelsestuen, and Bob McDowall
Financial Strategies & IT Investments
The global financial services industry will spend $30 billion annually on risk management by 2012, consuming 7% of total IT budgets. Given IT spending reductions and anemic recovery, the 6.15% compound annual growth rate is significant. Regional differences will largely be offset by the desire for better risk management, increased visibility into risk, and an improved, transparent understanding of interdependencies of markets, products, and the behavior of complex financial instruments. The focus of this TowerGroup Research Note is on pure risk management spending rather than spending on the broader requirements of governance, risk management, and compliance.
Risk Failures at Securities and Investments Firms: Post Mortem and Impending Corrective Actions
Author: Dushyant Shahrawat, CFA
Investment Management
The current financial crisis has exposed serious flaws in risk management not just by securities and investments firms worldwide but also by central regulatory agencies and the global financial industry at large. The industry cannot begin addressing these issues without understanding what went wrong. This TowerGroup Research Note analyzes the top 10 types of risk management failure that occurred, revealing a colossal failure of risk management on all fronts. The Note ends by identifying three areas in which TowerGroup anticipates that changes will be made in risk management.
