After the economic drop of 2008, portfolio management, also known as the art and science of making decisions about investment mix and policy, asset allocation and balancing risk against performance, became an even more challenging responsibility because of the trauma caused by such chaotic period.
According to SimCorpStrategyLab, rebuilding trust is the main challenge facing global asset managers. With this, they have to ensure clients that all risk challenges, such as operational risk, market risk, regulatory risk and legal risk are properly addressed. It is all about attaining growth despite the cost challenges that they constantly deal with. But the question is how?
Kellogg School of Management, in collaboration with Diamond Cluster International explained that trade press and industry analysts consider IT portfolio management (ITPM) as the key. Out of 130 senior IT executives who participated in their survey, 65 per cent believe that incorporating technology in managing of investments could yield significant value.
Furthermore, their study revealed the primary factors that explain the soaring interest in IT portfolio management.
First is “tighter budgets.” In this case for example, cloud-computing solutions are easier to deploy, hence businesses should expect minimal project start-up costs. Also, since these kinds of services are basically pay as you go, there’s no need for capital expenditure (Cap-Ex) at all, says IT and social media authority SalesForce.
“The motives that drive different institutions to cloud differ,” said head of e-channels, Global Transaction Banking at RBS Alastair Brown in an interview with Business Cloud News.
“Tier One institutions are very much focused on reducing costs, getting to market faster, whereas the Tier Two and Three banks want to roll out services like trade finance that they wouldn’t be able to do alone,” he shared.
Second is “investor skepticism.” After the dismay of investors over lack of corporate governance in the previous years, they have since demanded for greater transparency regarding how spending ties to results. Today, many portfolio management solutions present a single dashboard where administrators and authorized third parties can easily sync findings by keeping all the files in one central location. This does not only enhance transparency, but also data management and collaboration.
Last but not the least would be the “higher expectations” on CIO business skills and accountability. With the help of advanced portfolio management solutions, asset managers are considered more equipped when it comes to real-time monitoring and evaluation of data, as well as formulating disaster recovery plans.
In fact, corporate researchers Aberdeen Group found out that businesses which moved to cloud were able to fix issues in an average of 2.1 hours, and not the typical duration of 8 hours.
To find the portfolio management software that suits your company’s needs, contact a trusted asset services firm recognized for providing exceptional client care and innovative technology solutions.
