A new survey by software supplier Oracle claims that nearly half of the financial institutions do not have the tools to assess performance management and risk together. In addition, only 18% of respondents have the ability to deliver performance and risk information to the business in real-time, and 14% feel that they are unable to monitor and respond to changing market scenarios.

 

Nearly three-quarters said that their IT infrastructure was not capable of utilizing stored data to provide a full risk assessment. Additionally, almost half expressed a lack of confidence in the accuracy of data related to risk.

 

"Financial institutions must integrate risk and finance to provide a solid foundation for the future. This research highlights that there is still a long way for financial institutions to go to confidently manage their information," said Nazif Mohammed, vice-president EMEA financial services at Oracle. 

 

"Outdated or irrelevant data hinders effective decision-making and performance. Without complete visibility into the business, financial institutions will continue to be unable to react to market conditions as they occur," he added.

 

The majority of respondents from the banking sector (85%) do not have performance management systems completely integrated with risk analysis systems while 41% of those do not currently assess risk and performance together and are not seeking to incorporate risk into decision making.

 

Across EMEA, only 24% of respondents viewed risk assessment and performance management as being tightly dependent. However, almost a third (29%) have an element of their remuneration package based on the accuracy of their information.

 

Only 44% of those surveyed are very confident in their company’s performance over the next two years, with seven per cent claiming that they are not all confident in the performance of their company.

 

The survey questioned more than 200 finance professionals and a further 200 plus financial technology executives from across Europe.