Report Summary
A survey sponsored by Broadridge, of more than 400 financial services executives highlights how operational teams are contributing business value today. The report identifies the challenges to organisational success that financial firms are facing and acknowledges the critical role of operations in today's global, highly regulated marketplace. This complex, constantly changing landscape has become the “new normal” for financial firms. Within this context, the majority of business leaders appreciate the transformative power of operations and are eager to have the chief operating officer (COO) play a leading role in driving business model change.
Why read this report
- 57% of executives say that expanding into new markets is their single biggest business orientation.
- Regulatory compliance is heavily dependent on technology, which—despite becoming more affordable—still requires companies to make the necessary investments.
- A robust, integrated and centralized system that accommodates varied regulatory demands from multiple jurisdictions can form the basis for highly productive and efficient operations.
- Development of automated operational processes that integrate risk management, audit trails and compliance functions is cited by nearly half of survey respondents as the best way to respond to more intense and detailed regulatory and governance requirements.
- Businesses would be wise to foster a culture of compliance, which requires hiring specialists and educating the entire employee base.
"With operations units at the helm, the most adaptable firms are leveraging risk management and front-office activities to overcome these challenges while at the same time, driving value to the business."
Research Methodology
"Operations Power Performance: Managing risk and delivering value" draws on an Economist Intelligence Unit survey of financial services executives conducted during the first quarter of 2014. The survey garnered responses from 414 executives from around the world engaged in securities-related businesses. Leaders of buy-side operations, sell-side operations and corporate management are nearly equally represented. More than 40% of survey respondents hold C-level positions, including 19% who are CEOs. Asia-Pacific, North America and Europe each account for about 30% of the survey sample. About one quarter of the companies represented have $5bn or more in annual global revenue, while 39% have less than $1bn in revenue.
