The hidden risk

Risk is inherent in the use of spreadsheets within financial institutions but it has long been ignored. Now regulatory scrutiny into processes is spurring growth in the market for spreadsheet control solutions. Nolan Gesher explains why they are worth considering

Spreadsheets seem to be the perfect tool for managing critical data with flexibility and little or no overhead. Yet, the characteristics that make them so desirable also pose risk. The manually intensive nature of spreadsheet creation and use increases their level of vulnerability to error and fraud.

In light of the recent global financial crisis, auditors and regulators are increasingly scrutinising all areas of business – including processes and controls surrounding spreadsheets. In an attempt