Think-tank JWG urges Financial Services regulators and firms to collaborate with technology firms in advance of cloud and data crises
London, UK – 4 August, 2020 – JWG, the trusted financial services regulatory intelligence company, today announces the publication of a ground-breaking research paper ‘Risk control for a digitized financial sector.’
The paper identifies a large systemic technology risk blind spot which regulators must take the lead in addressing.
JWG’s CEO, PJ Di Giammarino, commented: “Can a bank run its lending portfolio without loan data? Catastrophic data loss is the big risk to financial services that firms’ and regulators’ radars are just starting to register but is growing fast as the industry shifts infrastructure and data into the cloud.”
Di Giammarino continued; “Regulators must bring the industry to the table to think more deeply about the value of data to their enterprise and how to account for the risks. This paper is a call to action for regulators, regulated and technology providers to debate a digital risk control framework before we find financial services embroiled in a great infrastructure crisis.”
Francis Gross, Senior Advisor, European Central Bank speaking in a personal capacity said: ““In a hyper-networked world, technology itself generates risks which the current frameworks and cultures are ill-equipped to identify and address. Industry and authorities need to understand and accept that a collective problem is emerging and that we need to address it together in a comprehensive manner. Public and private sector strategies must align on common solutions, such as infrastructures, informed by further independent study. This report offers useful findings that could inform further efforts.”
The paper, which incorporates findings from JWG’s RegTech 2.0 conference and dozens of discussions with regulators, regulated and academia builds on 10 years of research into regulation implemented since the Great Financial Crisis. Moving forwards, JWG will continue to frame the debate on appropriate next steps, engage the key stakeholders, and help define a path for action. Those interested in joining are asked to contact firstname.lastname@example.org.
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