Elenanor Dempsey, Director of Strategy, Innovation & Transformation, Auxilion
Regulatory compliance one of top challenges facing businesses
OVER 70 per cent of senior managers in financial services see regulatory compliance as one of the top challenges facing their business this year.
The survey from IT services provider Auxilion, based in Citywest, and partner HPE, also found that a quarter are not confident their organisation would comply with CSRD requirements, while a similar proportion don’t believe current regulations around AI in the financial industry are sufficient.
In terms of wider Environmental, Social & Governance (ESG) considerations, 66 per cent believe ESG has a positive impact on the financial performance of financial institutions.
The leading factors driving financial services firms to adopt ESG are investor or board demand, reputation and branding, risk mitigation, customer priorities, and employee satisfaction.
That might explain why 69 per cent of financial services managers have received training relating to ESG and sustainability.
However, over two thirds believe current or upcoming regulatory changes are impacting their investment plans for IT service management while a quarter do not feel the market currently provides for their organisation’s managed services needs.
Eleanor Dempsey, Director of Strategy, Innovation & Transformation, Auxilion, commented: “There are no loopholes or shortcuts when it comes to addressing governance and compliance. Companies – especially those in highly regulated sectors including financial services – must step up their strategies and investments in this area. As well as training people, that means deploying technologies that support ESG efforts.
“Failing to meet such regulatory requirements or embracing ESG not only leaves organisations at risk of financial and reputational repercussions, but it could also have a negative impact on investor and customer relationships. In turn, the performance, growth and future of their business could be in jeopardy.”
