The fundamental flaws of system design in the financial company must be addressed before technology. Errors can come about from undertaking a too short review and analysis of the company needs before quoting the price for the contract. The immediate need is to establish a coherent risk management strategy, rather than a hotch-potch buying of fashionable technologies and top names. It requires a plan and a project methodology.
What we find when designing dealing environments for banks and funds is that risk management and IT initiatives can be conducted piece-meal. The may be happy to pay $5 million for a group of star-traders properly kitted out with the latest technology. They are reluctant to shell out $500 000 for a risk management system that backs up best-of-breed redesigned business procedures.11 Fixing the problem after the risk event occurs can cost hundreds of times more than prevention.
A clear prioritisation with coordinated goal setting is required for mapping and management of the risk areas and technologies. A risk map of designated business operations areas coded red, amber and green can demonstrate the project priorities. These can be input into the user’s needs analysis for creating the design specifications in the “user system requirements” (URS).
Giving the go-ahead
Bringing the changes required for the desired risk management processes will be an arduous task in itself. We deal with so different groups of people, crossing departmental boundaries. All these introduce something novel into the company, and change management skills will be needed to bring these new business processes to fruition. Definition of performance criteria, underperformance penalties and budgeting is likely to be contentious. Securing support from the directors will be a prerequisite for getting most large-scale projects off the ground.
Various representatives from the major departments and stakeholders involved are invited to sit in a Delphi group to offer their views on the investment project. Sometimes there are consultants brought in to present an impartial opinion of the corporate project risk map.

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