UK: New research by Ordnance Survey (OS) among directors and managers of operational risk in the financial sector revealed that a lack of resources is, and will continue to be a problem as operational risk continues to increase in importance.
Despite operational risk moving up the organisational agenda in the last year according to over 84 per cent respondents, only 49 per cent believe they currently have sufficient resources to achieve their objectives. Nearly two in three (65 per cent) say they are expecting resources to be a key issue facing their role over the coming year. Two-thirds of respondents (66 per cent) regard address and location information as vital, very important or important to their organisation, only a third (35.4 per cent) are actually utilising geographic data in their current role. Those that are taking advantage of it are using it for disaster scenarios and catastrophe modelling, fraud analysis, hotspot and pattern analysis as well as money laundering analysis and branch network management.
Sarah Adams, Insurance and Banking Sector Manager at Ordnance Survey said, “80 per cent of operational risk managers are responsible for contingency planning, but according to our research they seriously lack the resources to support them with this important task. Real-life geographic information could help enormously, enabling managers to produce better contingency plans. Our research shows that most operational risk managers do understand the importance of geographical data in risk management and those that use it see it as incredibly useful, yet two-thirds of those surveyed are still not taking advantage. If they did, they would find that it not only helps with regulatory compliance but can also improve overall business performance.”
Source: Ordnance Survey