01 October 2013

Finance executives see common reporting as more of a headache than Solvency II and Basel III

"The survey of senior business executives suggests that organisations are struggling with demands to provide more information on risk exposure and capital data to regulators", stated the firm. It said that a quarter of respondents admit that the increase in complexity, granularity, frequency and volume of information required for CoRep and FinRep is a 'challenge'. These new rules have been introduced by the European Banking Authority (EBA) as it seeks to standardise reporting to national regulators.

Some 22 per cent of executives who took part in the survey said that Solvency II is their biggest headache. A further 17 per cent of executives named Basel III, the regulation that requires banks to hold enough cash or liquid assets to meet liabilities for a year, as their biggest challenge.

Jim Muir, Director of AutoRek, said: "Regulators are focused on creating a more controlled market and demanding more risk and capital data to increase their visibility into the governance and accountability of organisations. As firms start to recognise that the longer-term trend is for providing more data, and faster, investment in new financial controls and strong data management practices is becoming a strategic imperative for the business."

"However, despite the challenges associated with meeting new regulations, the survey suggests investment in financial controls including people, processes and systems is deemed as a 'help' in achieving growth, with 82 per cent admitting that it enables more rigorous profit and loss control", stated the data firm.

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