How a firm manages data is now intrinsic to its value, yet the FS risk management framework provides no way to account for IT obsolescence, cloud concentration and data risks on the balance sheet.
An explosion of advanced computing capability facilitated by cloud technology has provided massive benefits to both regulated financial institutions and their regulators. However, it has also introduced new systemic technology risks to the financial sector.
What were once core data sets under lock and key of a physical data centre are now spread over massive networks and intertwined with other public and private information stores. This data resides on infrastructure owned by many parties and ultimately concentrated in the hands of a few providers who do not own the risk of failure.
Now more than ever, this data is needed to fight the crises of the 2020s.
However, powerful distributed technology does not come without idiosyncratic and systemic risks. These risks reside off balance sheet and there is no way to quantify them – leaving the market with a large blind spot.
New governance measures being introduced by ESG could provide a path forwards, provided the industry is prepared to agree RegTech standards.
JWG has conducted in-depth research with SMEs, regulators and academia on new ways to shine light on the RegTech IT and data blind spot.
Our forthcoming research report draws conclusions from JWG’s February 2020 RegTech 2.0 conference with 250 market experts.
Key JWG report takeaways:
- Pre crisis analogue regulations have become data-centric since the GFC
- A large amount of risk remains off balance sheet and cannot be evaluated
- RegTech standards can provide measures for idiosyncratic and systemic technical risks
- New RegTech standards can be developed to satisfy ESG and SM&CR obligations
- Implemented correctly, a new incentive system can spark innovation and lower costs across the sector
Join us for on 21 July, as our virtual panel discusses:
- New regulatory concerns over third party risk, operational resilience and cloud
- Overcoming data and infrastructure policy challenges in a cloud centric world
- The future of RegTech standards for idiosyncratic and systemic technical risk measurement
- Francis Gross, Senior Advisor, European Central Bank
- Tom Bigham, Partner, Technology and Digital Risk, Risk Advisory, Deloitte
- Suchitra Nair, Director Centre for Regulatory Strategy, Deloitte
- Dr. Richard Harmon, MD Financial Services, Cloudera
Moderator: PJ Di Giammarino, Founder & CEO, JWG
A free copy of the paper will be made available to registrants after the webinar.