Financial institutions, and regulators, have traditionally been sensitive to data protection, privacy, and security issues for risk and compliance operations. Accordingly, firms have been cautious in deploying risk management technology to the cloud. Nevertheless, the cloud’s ability to support scalable, flexible, next-generation technologies—and at a lower cost—is leading many firms to turn to the cloud in order to resolve some of their most intractable risk and compliance challenges. The increasing importance of regtech and next-generation technologies for risk management will ensure that this trend to the cloud will continue.

To address this evolving strategic transition, Celent has identified seven key considerations for CIOs, CISOs, CROs, and line of business stakeholders. These considerations cross three broad categories: security, risk and compliance; ecosystem management; and current operations and strategic planning.