SAAS touted as an option for smaller firms

Financial institutions are under pressure to upgrade risk technology to comply with new regulations, but this poses cost issues for many firms. Software-as-a-service applications could be an option for resource-constrained institutions. By Clive Davidson

Coping with regulatory change has become a major preoccupation for many financial institutions. The push to central clearing for over-the-counter derivatives, the introduction of new capital charges for liquidity risk and credit value adjustment, and changes to the market risk framework are just a few of the tasks banks currently have on the go. All this requires alteration to systems and processes, but there is only so far the resources at many smaller institutions can be stretched. One