Drivers

Main Drivers for IT and Security Infrastructure

With both volumes and volatility growing, financial markets firms are adopting strategies to increase profitability and market share. For one, leading institutions are increasing the sophistication of their electronic trading systems. Also, they see the need to create infrastructures that shift costs from a fixed to a variable model to enable them to be responsive to fluctuating business demand.

The need to better monitor and control exposure, coupled with constraints arising from regulatory requirements, such as the Basel II Capital Accords, the Sarbanes-Oxley Act, and Section 501 of the Gramm-Leach-Bliley Act, has forced financial markets firms to review risk management and compliance policies, processes and systems.

As banks turn more and more to technology to further their business, new risks brought about by technology are encountered and must be addressed. Primary is the risk of unauthorized intrusion into the financial institution's network, where information can be compromised and systems damaged or altered. Organizations make a great effort to prevent such intrusions from occurring, developing protection and detection mechanisms to thwart break-ins.

Read more about the Typical Challenges in the Finance Industry