Denise Valentine,
senior analyst,
Aite Group
Securities firms have to impress upon employees the necessity of good governance, risk, and compliance tools that can help restore trust among clients, according to a new report from market research firm Aite Group. However, firms will have to find GRC support systems in a highly fragmented market, researchers say.
“To meet regulatory obligations and earn back trust following the financial crisis, companies must define their risk appetite and communicate to employees the necessity and purpose of governance, risk, and compliance,” Aite says in a statement about the report, “Governance, Risk, and Compliance: Smooth Seas Do Not Make Skillful Sailors.”
The report is based on interviews with vendors serving the financial services industry and a vendor survey. The report focuses on the challenges and benefits of the technology, identifies the latest developments affecting adoption, and includes brief summaries of key vendors, Aite says.
Vendors and service providers often simply make “incremental additions to their solution functionality or service,” Aite observes, calling it a “painstakingly slow process” that cannot be applied to other new regulations and results in a “type of patchwork support” with risk and compliance teams dependent on other divisions for the information they need.
Aite’s bottom line: “Risk and compliance software is therefore a highly fragmented market, but GRC software aims to bring GRC teams’ many responsibilities into one tightly runs ship.”
The report, by Aite senior analyst Denise Valentine, is available for download by clients of the firm’s institutional securities and investments service or the wholesale banking and payments group.
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