Time is ticking on Monetary Authority of Singapore technology risk management compliance

 Guest post by Lisa Chow, Market development, HP Software

 

The Monetary Authority of Singapore (MAS) recently issued new guidelines and a Notice on technology risk management for financial institutions doing business on its sovereign city-state. Singapore is one of the world’s leading financial centers, (behind only London, NY, and HK) and home to a large number of internationally significant businesses, banks and stock exchanges.

 

With these guidelines is the Singapore government setting a precedence that others will follow? Has technology become such an impactful factor that it warrants not only management but oversight? No industry has faced more regulatory proliferation than the financial services industry and it seems the time has come to add technology to the regulator’s list. 

 

FSI.pngBusiness survival, sustainability, and success are predicated on good risk management as much as they are on other areas of management (innovation, execution, etc.). Whether it is managing risks associated with liquidity, operation or market; financial institutions know the importance of risk management in the daily running of their business. Risk is a daily consideration given the volatile and competitive markets financial institutions operate in.  Unfortunately, competing agendas such as shareholder pressure to drive aggressive revenue growth—can result in risk management neglect.

 

Financial systems provide structure and stability to the economy, and it is important that regulatory bodies step in with supervision and mandates to ensure sound risk management is actively practiced. This is why it shouldn’t come as a surprise that this past June the Monetary Authority of Singapore came forth with new guidelines and a Notice on technology risk management. With these guidelines, the Monetary Authority of Singapore recognizes technology underpins and enables much of today’s financial operations. Heavy reliance on technology means increased risk associated with IT system disruptions, cyber-attacks and new technology introductions.

 

A leader in enterprise security software, HP Software has been working with financial institutions worldwide to help them manage their technology and security. HP Software offers a rich portfolio of IT management and security tools. We advocate a holistic approach to risk management and believe that a sound framework can significantly reduce complexity and cost. I encourage you to read this whitepaper for a discussion on the topic. The guidelines provided by MAS are elaborate and complex. With the Notice going into effect in less than a year, financial institutions  need to quickly revisit, revamp and restructure their risk management practices ensuring that they are consistent and in compliance with the MAS guidelines. To assist, we have been conducting individual workshops and one-on-one account discussions. In August we sponsored a CIO Matrix gathering to help with the discussion in defining the definitions and strategies around the new guidelines. We have also recently published a technical whitepaper providing a quick reference guide on how HP can address the guidelines.

 

Read these whitepapers and give us your thoughts, concerns and experience in the comment section below.

I would love to know what kind of resource and actions have you put toward your technology risk management?

 

How have regulations around technology risk management, such as those by MAS, affected your technology adoption strategy?

Does your organization take a holistic approach to technology risk management and is it part of your organization’s Governance, Risk and Compliance practice?

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