7 in 10 capital market firms to focus on risk management: survey

37% of firms said they identified new demands on risk management.

Risk management will be the key area of focus for 70% of Singaporean capital market firms for their regulatory and compliance investments according to a survey by FIS.

The survey said that 37% of Singaporean capital market firms—buy-side, sell-side, and insurance—identified new demands on risk management as well as cyber and fraud risks to be some of the biggest operational and technology challenges confronting them.

To maintain or improve competitiveness, 53% of firms surveyed plan to strengthen cyber and fraud risk defences by investing in RegTech solutions, ahead of the global average of 37%. Insurance firms (80%) showed the greatest appetite.

43% of firms said tech vendors can add greater value in helping to strengthen risk management, compared with 39% of firms globally. Meanwhile, buy-side (50%) and sell-side firms (60%) say strengthening compliance and risk management is the top priority for investments in machine learning and artificial intelligence over the next 12 months.

According to Ashish Rai, group managing director, APAC and MEA, Capital Markets at FIS, the rise of a remote workplace has been shining a spotlight on cyber and fraud risks and new demands on risk management are also presenting some of the biggest short-term operational and technology challenges for firms.

“The good news is that Singaporean firms are starting to take action to respond to the changing risk landscape. A significant 53% of firms view investments in RegTech solutions to strengthen cyber and fraud risk defences as a competitive advantage, ahead of the global average of 37%. We are witnessing a surge in demand for robust RegTech and surveillance tools across operations. As risk management takes centre stage, Singaporean capital market firms are acting fast to answer the call and up their investments in their risk capabilities to cement their position as global leaders,” Rai said.