Predicting the Future

In an attempt to drive thought leadership among the risk and compliance industry, Microsoft and the Professional Risk Managers' International Association (PRMIA) announced the results of a recent survey. It found that members in both financial and nonfinancial institutions agree that enterprise risk management is a leading trend. Views differed, however, on what each type of business thinks is most important.

Financial institutions place a strong emphasis on liquidity risk buffers and stress testing, while nonfinancial institutions focus more on operational risk and cash flow risk. In the area of future trends in risk technology, responders expressed expectations of more automation and self-serve analytical tools, allowing greater time to be spent on risk mitigation measures, instead of administrative tasks.

One area where respondents see challenges is the practice of obtaining risk data for management and board reporting. Reasons for this include the lack of effective tools for aggregation or analysis and the unavailability of data, reflecting "the broader pulse of the risk profession beyond regulations, including vision, game changers, productivity and a generational shift in talent pool and technology," said Susan Hauser, vice president of worldwide industry and global accounts for Microsoft.