Most IT departments do not understand crucial management functions within their companies, according to new research.
That is the damning verdict from over half of risk-managers questioned in an international survey. The majority (56%) blamed their IT department for failing to understand risk management issues including operational, credit and market risks.
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The survey of financial services companies raises concerns over the profile of IT departments within the finance sector, traditionally the heaviest investor in technology.
Respondents surveyed by consultancy CWB and the Global Association of Risk Professionals (Garp) also said that the need for accurate risk data was integral to their department's success.
A lack of "clean" risk data was the key reason given for the failure of any new risk system implementation. "There is an opportunity for many institutions to gain a competitive advantage by using the risk management function, but this requires better understanding of risk at board level and in the IT department," said David Pritchard, principal consultant in CWB's risk practice.
But IT staff did receive some praise as well as blame. Nearly 70% (69%) of risk managers felt their departments were becoming more streamlined as a result of IT developments. However, 67% were turning to third party suppliers for IT support.