From regtech and artificial intelligence to preparations for MiFID II, our recent Risk and Financial Regulation Summits helped more than 600 risk and compliance professionals understand key industry challenges.
“Uncertainty presents opportunities” should be the message still ringing in the ears of delegates who attended this year’s London Risk Summit.
Urging firms to influence their futures rather than simply watch as rulebooks change, Phil Cotter, Thomson Reuters Risk managing director, said this was “one of the most exciting and challenging times” for risk and compliance.
His opening remarks at the summit, Riding the Disruption Wave, set the tone for a thought-provoking event in which keynote speakers and panel sessions tackled innovation and how organizations can gain a competitive advantage.
Watch video — Risk Summit 2017: Highlights and key takeaways
Here we present some of the key takeways from the two summits, alongside poll results and video highlights.
Regulatory risk or opportunity?
At the outset of the Risk Summit, delegates were asked if they thought they had sufficient in-house skills and resources to meet the constant stream of upcoming risk and compliance challenges.
A return of 64% said they had pretty good resources but may well need more.
They included leading economist Mariana Mazzucato, as she considered the question of whether regulation stifles innovation.
Ms Mazzucato, a professor in the Economics of Innovation and Public Value at University College London, insisted the role of regulation is to assist in shaping ecosystems and suggested it is more of a problem when growth is not coming from innovation.
She argued that financial regulation brings with it opportunities such as the ability to provide higher-quality products at lower costs.
Third-party and AML risk
Other sessions covered third-party risk and how to ensure that suppliers don’t end up putting businesses in the wrong spotlight.
Our poll found that 85% already implemented a risk-based approach for managing third parties, with the majority of risk and compliance professionals saying they use multiple tools and applications to do so.
Andrew Yuille, Head of Risk Business Solutions, told the audience: “In a complex geopolitical landscape, the challenge can be addressed with the right tools and, importantly, collaboration within an organization and between organizations.”
They ranked the biggest challenge faced in the screening process as determining the ultimate beneficial owners of customers and third-parties.
MiFID II focus
In the afternoon, the Financial Regulation Summit addressed key regulatory challenges impacting buy-side and sell-side entities, and the financial services sector at large.
MiFID II provided the inevitable focus, before discussions about research permissioning, fees and unbundling, the Fundamental Review of the Trading Book, and the EU General Privacy Directive.
Watch video — Financial Regulation Summit: Key highlights and insights
Attendees were asked how ready they feel for MiFID II, with 64% of delegates claiming they were either “touch and go” or “nervous”.
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Regulating for the risks of the future
For the final session of the day, Marion Leslie, Managing Director of our Enterprise Proposition, hosted a macro-regulatory panel, with guest speakers discussing trends and likely challenges in the future.
She argued that “the kind of investment that firms are making in their data today is the kind of investment back office operations have been asking for, for the last 20 years”.