AIM Survey Shows: Basel II Driving IT Investments; Financial Industry Regards Data Quality as a Key Issue for Risk Management

Business Wire, Dec 14, 2005

NEW YORK -- AIM Software, the Vienna University of Economics and Reuters (LSE:RTR) have released the findings of the second global reference data management and risk management survey, based on phone interviews with 1,070 financial institutions across Europe, America, Asia and the Middle-East.

This year's survey reveals that improving data quality is regarded as a key issue for risk management and that regulatory requirements including Basel II, the Markets in Financial Instruments Directive (MiFID) and Sarbanes-Oxley are driving investments in IT.

"The results show that companies see the close interdependence between reference data management and efficient risk management," explains Martin Buchberger, Head of Marketing at AIM Software. The fact that the percentage of companies planning to improve the automation in this area grew from 64% in 2004 to 72% in 2005 underlines this finding.

The focus lies on the automation of reference data and the processing of corporate actions data, the areas from which the largest costs originate. 45% of the 1,070 respondents plan to increase the level of automation for corporate actions. "Companies realize that they face serious operational risk and huge potential losses in this area. Corporate actions are deemed to be the least automated and therefore most labour-intensive, error- and risk-prone areas," states Angela Wilbraham, Managing Director at A-Team Group.

"In comparison to last year's survey, more attention is being paid to the challenges of Basel II and risk management," explains Buchberger. Financial institutions intend to manage their allocation of regulatory capital more rigorously and to align this with risk exposures. This effort is targeted towards improving the understanding of risk management, so establishing higher internal standards and better management of capital.

"This survey enables companies to get a comprehensive overview of the status quo in their industry. Readers can deduce where they have to catch up with the regional benchmark and how trends like STP are evolving," says Kevin Bradshaw, Managing Director, Enterprise Information, Reuters Group plc.

The full results of the survey are available at www.dmstudy.info/2005.> Please find this press release in twelve languages at: http://www.aim-sw.com/press/pressinformation/

About AIM Software

Founded in 1998, AIM Software specializes in creating innovative reference data and risk management software solutions for financial markets. With offices in Austria, New York, Switzerland and Hong Kong, AIM operates globally in the major financial centres with 80 clients.

About Reuters

Reuters (LSE:RTR), the world's largest international news agency with 2,300 editorial staff in 197 bureaus in 92 countries, bases its reputation on speed, accuracy and independence. In 2003, the Reuters Group had revenues of GBP 3.2 billion.

About the Vienna University of Economics

The Vienna University of Economics was founded in 1898 and offers a broad range of disciplines. The Department for Applied Regional and Economic Geography focuses its research on regional developments.