Banks Turn to Risk Management as Global Slowdown Continues
The ongoing economic downturn is compelling banks to increase their focus on risk management solutions being offered by technology vendors, a report from research firm IDC said.The IDC report said vendor risk management has been "forced" by the current economic crisis, with the tumultuous environment putting into question the viability and sustainability of vendors' businesses.Other factors such as expanding regulation, a consolidating vendor landscape, and more stringent vendor selection guidelines have also pushed banks to strengthen vendor management practices, the report also said.Leading banks have generally followed a cohesive framework of vendor risk management, with growing attention given to vendor due diligence to ensure that vendors will be able to sustain operations, especially amid the current crisis.Banks are going beyond the cursory evaluation of annual reports, but are also looking more closely at other financial and performance metrics.Evaluation of the vendor's corporate governance structure is also being taken more seriously, IDC said."The efforts of banks to look at operational risk practices, either on their own or as part of the broader Basel II program, have put IT risk high on the agenda," Michael Araneta, senior consulting and research manager …
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: Banks Turn to Risk Management as Global Slowdown Continues. Contributors: Not available. Newspaper title: Manila Bulletin. Publication date: September 3, 2009. Page number: Not available. © 2009 Manila Bulletin Publishing Corp. COPYRIGHT 2009 Gale Group.
This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.