UK financial services leaders expect that their business-critical data will come under greater scrutiny from regulators over the coming year, new research suggests.
A study by data management expert ClusterSeven found that half (51%) of C-level executives working in UK financial services firms forecast that regulators will want a better understanding of how they manage business-critical data held on spreadsheets and similar databases over the next 12 months.
Meanwhile, two-fifths (40%) believe that auditors will review spreadsheet management processes and systems as a key part of a firm’s reporting controls.
A similar number of C-level executives (43%) think that their own management teams will strengthen spreadsheet controls over the next 12 months in response to regulatory and market demands for much stronger data supervision.
According to the research, C-level executives with a core responsibility for tax are most conscious of the growing interest from regulators, with two-thirds (68%) saying they expect regulators to focus more on the use of corporate spreadsheets. This is followed by those in accounting (53%) and risk modelling (51%).
Ralph Baxter, CEO of ClusterSeven, said: “Regulators understand that there are significant risks involved in using spreadsheets to manage critical information and there has been a substantial increase in the way they and other stakeholders such as auditors are looking at the quality of data and the processes firms employ to manage it.”
He continued: “Regulators are increasingly asking for proof – a data audit trial – that fundamental business data is correct, and the onus is falling on firms to prove the validity of their data and that the processes that underpin processes are adequately safeguarded against errors, miscalculations and fraud.”
Sally Percy is editor of The Treasurer