CREST examination facility officially opened at ... » In partnership with the Cyber Security Agency of Singapore (CSA) and the Association of Information ... MWR to Demonstrate the Latest OS Kernel Fuzzer ... » James Loureiro and Georgi Geshev, both Security Researchers at MWR InfoSecurity, will be showcasing ... Network Utilities becomes first UK Pulse Secure NA... » UK: Pulse Secure  has announced Network Utilities (Systems) Ltd as the first Secure Premier partner ... SentinelOne Establishes $1 million cyber threat ... » PALO ALTO, CA: SentinelOne has announced a cyber threat protection guarantee to provide customers wi... New study reveals software pricing and licensing t... » Maidenhead, UK: The enterprise software marketplace is undergoing a massive transformation as the pr... 380 MOBOTIX Outdoor Cameras installed at ancient R... » Langmeil, Germany:  Pompeii is the world-famous ancient Roman city near modern Naples which may rece... LOCKEN extends frontiers of access control beyond ... » As the digital era continues to evolve businesses are increasingly looking to expand access control ... Liverpool to host Armed Forces Day 2017 » The ninth annual Armed Forces Day, honouring the work and dedication of our brave Servicemen and w... OF FOOLS OF THE MIDDLE BELT, ONE NORTH AND PASTORA... » PART FIVE A treatise on pastoral jihadism, islamism, arabism and cultural imperialism in Nigeria ... Dimension data helps police keep Tour de Yorkshi... » Tracking and data technology on police cars, motorcycles, and vans helped lead, surround, and follow...

CLICK HERE TO

Advertise with Vigilance

Got News?

Got news for Vigilance?

Have you got news/articles for us? We welcome news stories and articles from security experts, intelligence analysts, industry players, security correspondents in the main stream media and our numerous readers across the globe.

READ MORE

Subscribe to Vigilance Weekly

Information Security Header

Nearly half of executives think failure of financial controls will cause the next financial crisis according to AutoRek research

Five years on from the collapse of Lehman, new research reveals that the next big crisis could be a repeat of the US subprime mortgage melt-down

London, U.K.: AutoRek, the leading financial data management provider, has released new research analysing current attitudes to Britain’s financial controls agenda and the strategic importance that it plays within businesses. The survey reveals that despite the growing attention being paid to developing good governance policies, nearly half of financial services executives believe the next major financial crisis is likely to be caused by a failure of financial controls.

 

In total, 46 per cent of executives either agree (36 per cent) or strongly agree (10 per cent) that the breakdown of financial checks will be responsible for any future crisis, indicating that there could be a repeat of the US subprime mortgage crisis which led to the recession that began in 2008, rather than a sovereign debt crisis.

The survey - spanning financial services professionals in the asset management, banking, foreign exchange, insurance and stockbroking sectors - also reveals that financial controls have become a driving force for today’s financial services firms, redefining attitudes to risk, business growth, new opportunities and the need for systems and tools that are fit for-purpose.

Nine out of 10 respondents feel that financial controls are either important or very important to their company’s board of directors, and this number increases to 100 per cent for stockbrokers. When asked whether financial control considerations are an important factor when making strategic business decisions, nine out of 10 respondents believe that it is either important or very important, compared with just 2 per cent who think it is not important at all. Within the banking industry, this number jumps even higher, with 97 per cent considering the financial controls agenda to be an important factor when making considered business decisions.

Graeme McKee, marketing manager at AutoRek comments on the results of the research: “Our survey demonstrates that the financial controls landscape not only plays a vital role in business planning and strategy, but has also captured the full attention of the board. With increasingly complex regulation and more severe penalties already on the horizon, the financial controls agenda has become an inescapable part of day-to-day business for firms operating in the financial sector. As a result, organisations need to take the necessary steps to prioritise good governance, and introduce financial controls that provide an audit trail of compliance, to ensure that we don’t repeat the fundamental failings associated with the last financial crisis.”