Real-time risk software 'would have benefited financial firms'

14 July 2009

Real-time risk management software may have helped financial institutions be better prepared for the current economic crisis, new research has suggested.

According to a study by Aleri, over 70 per cent of the 250 asset managers, banks, brokerages and hedge funds questioned believe that they need the ability to manage risks in real-time.

The majority (55 per cent) said that they have taken steps to ensure they are better protected against market volatility since the onset of the financial crisis.

However, hedge funds appeared to be the most at risk, with just over a quarter (26.4 per cent), stating that they fell they have the technology necessary to manage their risks, compared to half of banks.

And they were found to be the most likely to reduce their IT expenditure, with 26.7 per cent making cutbacks in this area.

PricewaterhouseCoopers recently suggested that the financial crisis will force many asset management companies to make changes to their business models.

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