Thursday Mar 13, 2014

Discover new agility and build your competitive advantage

As customer expectations grow, many financial services organizations are struggling to keep up. Customers want a faster, more efficient service across all channels, and won’t hesitate to look elsewhere to find it. But how can you accelerate service, stay on top of ever–evolving regulations, and stay ahead of the competition?

It’s important to:

  • Develop new agility to stay ahead of the competition
  • Simplify compliance to protect and enhance your reputation
  • Increase customer satisfaction in a highly competitive market
  • Take full control with enterprise project portfolio management

Learn how you can improve operational efficiency, quickly respond to changing customer demand and build competitive advantage.

Tuesday Sep 10, 2013

Project and Program Management: The Key to Thriving in the Regulation Nation

Written by: Mike Metcalf, Director of Services Industry, Oracle PrimaveraProject and Program Management System for Regulatory Compliance and Control

Between 2009 and 2012, US businesses were burdened with more than $500 Billion in regulation costs. In 2012 alone an additional $215 Billion in final rule costs were added. For financial services organizations, the Basel capital standards, Volcker rule and Durbin Amendment are most often cited as major drivers of additional costs. According to its own reported data, Bank of America spends over $4B on regulatory costs representing almost 3.5% of its market capitalization. In its 2011 annual report, JP Morgan Chase states, "It will take an enormous amount of resources across all of our disciplines – people, systems, technology and control functions (finance, risk, legal, audit and compliance) to get it done right. Over the next few years, we estimate that tens of thousands of our people will work on these changes, of which 3,000 will be devoted full time to the effort, at a cost of close to $3 billion." 

Remarkably, in spite of this explosion of regulations, increasing compliance costs, limited resources and emphasis on change management, most compliance efforts are dispersed across the organization and lack any formalized project and program management controls. As many CIO's have experienced, effective project portfolio management processes and systems can help via their ability to:

  • Communicate and co-ordinate change management activities that span functional and organizational boundaries
  • Improve governance and oversight of business-critical initiatives
  • Identify and eliminate duplicate or rogue initiatives
  • Leverage best practices across the organization
  • Mitigate schedule risks and help control costs

The American Action Forum estimates the total financial services regulatory cost over the last 10 years to be almost $25 Billion and growing. The 2013 Cost of Compliance Survey conducted by Thomson Reuters states that, "The fact that 67 percent of respondents expected their budgets to rise slightly or significantly indicated that those who make budgetary decisions are increasingly risk aware and appreciate the need to have a well-resourced compliance function to mitigate the myriad risks which firms may face in the coming year." It concludes by stating, "It looks as though 2013 will be characterized by the need to juggle a further increase in regulatory communications, to drive the implementation of agreed change and to ensure that senior managers focus on risk management and corporate governance. All this will have to be managed despite a lack of suitably skilled resources."

It is clear that we have entered an era of financial services re-regulation and that these challenges will continue for many years to come. It's time for risk and compliance officers to adopt proven solutions such as project portfolio management to manage the large and growing number of change initiatives resulting from these new regulations. Organizations that excel at managing regulatory compliance will minimize compliance costs, avoid penalties, and leverage regulatory mastery for competitive advantage. 

Tuesday Jul 23, 2013

Q&A: Project Portfolio Management Can Help Financial Services Firms Succeed

As executives in financial services organizations across the globe face intense regulatory scrutiny, the project management office is playing a more crucial role in maintaining agility and strategic project planning, according to a new Oracle white paper, “The PMO—The Key to Surviving Financial Services Reregulation.”

Mike Metcalf, Oracle’s strategy director for services, says the right enterprise project portfolio management (EPPM) solutions and a central project management office can help financial services firms become less reactive and better equipped to deal with regulatory challenges.


Q: What problems are financial services organizations facing in the aftermath of the financial crisis?

A: Legislators in various countries have decided to tighten up regulations after a period when some rules were being loosened. So for financial services organizations, the challenge today is how to survive in an era of reregulation. The first obstacle they face is that new regulations may span different areas of banking operations, so some regulations may overlap and conflict with each other. Organizations must be sure that responding to one regulation doesn’t impact some other area.
Second, many organizations address these regulations in silos—different parts of the organization are responding to regulations independently, and they are tracking compliance with ad hoc tools, such as spreadsheets. This leads to increased risk because these tools are not conducive to collaboration or to creating a centralized view of all the regulations that need to be addressed.

Read the complete interview here.

Wednesday Jul 17, 2013

Q&A: Project Portfolio Management Can Help Financial Services Firms Succeed

For highly regulated financial services organizations, the project management office is playing a more crucial role in maintaining agility and strategic project planning. Mike Metcalf, director of services industry strategy for Oracle, says the right enterprise project portfolio management solutions can help financial services firms become better equipped to deal with regulatory challenges.
Read More[Read More]

Thursday Oct 18, 2012

Survey Probes the Project Management Concerns of Financial Services Executives

Do you wonder what are the top reasons why large projects in the financial industry fail to meet budgets, schedules, and other key performance criteria? Being able to answer this question can provide important insight and value of good project management practices for your organization.

According to 400 senior executives who participated in a new survey conducted by the Economist Intelligence Unit and sponsored by Oracle, unrealistic project goals is the main reason for roadblocks to success

Other common stumbling blocks are poor alignment between project and organizational goals, inadequate human resources, lack of strong leadership, and unwillingness among team members to point out problems.

This survey sample also had a lot to say about the impact of regulatory compliance on the overall portfolio management process. Thirty-nine percent acknowledged that regulations enabled efficient functioning of their businesses. But a similar number said that regulations often require more financial resources than were originally allocated to bring projects in on time. Regulations were seen by 35 percent of the executives as roadblocks to their ability to invest in the organization’s growth and success.

These revelations among others are discussed in depth in a new on-demand Webcast titled “Too Good to Fail: Developing Project Management Expertise in Financial Services” now available from Oracle.

The Webcast features Brian Gardner, editor of the Economist Intelligence Unit, who presents these findings from this survey along with Guy Barlow, director of industry strategy for Oracle Primavera. Together, they analyze what the numbers mean for project and program managers and the financial services industry.

Register today to watch the on-demand Webcast and get a full rundown and analysis of the survey results.

Take the Economist Intelligence Unit benchmarking survey and see how your views compare with those of other financial services industry executives in ensuring project success.

 Read more in the October Edition of the quarterly Information InDepth EPPM Newsletter

Wednesday Apr 11, 2012

Navigating the Unpredictable Swinging of the Financial Regulation Pendulum

Written by Guest Blogger: Maureen Clifford, Sr Product Marketing Manager, Oracle

The pendulum of the regulatory clock is constantly in motion, albeit often not in any particular rhythm.  Nevertheless, given what many insurers have been through economically, any movement can send shock waves through critical innovation and operational plans.  As pointed out in Deloitte’s 2012 Global Insurance Outlook, the impact of regulatory reform can cause major uncertainty in the area of costs.  As the reality of increasing government regulations settles in, the change that comes along with it creates more challenges in compliance and ultimately on delivering the optimum return on investment.  The result of this changing environment is a proliferation of compliance projects that must be executed with an already constrained set of resources, budget and time.

Insurers are confronted by the need to gain visibility into all of their compliance efforts and proactively manage them. Currently that is very difficult to do as these projects often are being managed by groups across the enterprise and they lack a way to coordinate their efforts and drive greater synergies.  With limited visibility and equally limited resources it is no surprise that reporting on project status and determining realistic completion of these projects is only a dream. As a result, compliance deadlines are missed, penalties are incurred, credibility with key stakeholders and the public is jeopardized and returns and competitive advantage go unrealized.

Insurers need to ask themselves some key questions:

    • Do I have “one stop” visibility into all of my compliance efforts?  If not, what can I do to change that?
    • What is top priority and how does that impact my already taxed resources?
    • How can I figure out how to best balance my resources to get these compliance projects done as well as keep key innovation and operational efforts on track?
    • How can ensure that I have all the requisite documentation for each compliance project I undertake?
Dealing with complying with regulatory efforts is a necessary evil. Don't let the regulatory pendulum sideline your efforts to generate the greatest return on investment for your key stakeholders.

Sunday Jan 29, 2012

Financial Services Industry Study Finds Swift Action and Proactive Approach Is Key to Reducing Project Risks

Volatile markets, weak customer demand, and heightened regulatory scrutiny require financial services firms to flawlessly manage project portfolios to minimize risk. Those that identify failure early in the project development process and respond to problems as they arise can invest in higher-risk initiatives without threatening their bottom lines or their reputations.

Those are some of the key conclusions in Preemptive Action: Mitigating Project Portfolio Risks in the Financial Services Industry, a research report created by the Economist Intelligence Unit and sponsored by Oracle.

“[When] firms understand how to identify and deal with indicators of failure early in the planning process, they can safely invest in higher-risk initiatives, such as launching new products and acquiring other firms, without putting their reputations or bottom lines in jeopardy,” the report explains.

The report further explains that this proactive approach, which requires both a rigorous project management practice and intrepid executives willing to make difficult decisions, is unusual in the industry. Where it exists, it allows companies to mitigate project risks and use resources more effectively to propel growth. In its absence, companies become more risk-averse, focusing on low-risk projects that merely protect assets and meet regulatory requirements.

A discussion of the report and its key findings are the focus of a new Oracle Webcast now available on demand. In this Webcast, the benefits and impact of using the right project portfolio management solution is also discussed as a key factor in successfully managing the project portfolio and achieving success.

Success Factors and Other Findings

A primary conclusion of the report is that financial services companies that excel in executing projects, especially those that involve regulatory compliance, can gain a competitive edge by embracing opportunities unavailable to peers with a constrained appetite for risk.

Other key findings of the study include

  • Managing must-do regulatory projects requires a balance between flexibility and adherence to process
  • Processes are not sufficient in identifying signs of failure and finding solutions—effective communication and collaboration are crucial.
  • Many companies fail to reassess risks throughout the project lifecycle—assess risks during planning and at project milestones
The full report is available for download.

Wednesday Dec 14, 2011

How Mature Financial Services Firms Deal With Troubled Projects

Project Oversight in Financial Services

In today's uncertain global economy, firms must execute projects flawlessly or risk losing market share, eroding customer confidence or failing foul of regulatory compliance. Few financial services firms can afford to let their projects underperform. Those that do risk damaging their bottom line, their reputation and their market share.  But according to an Economist Intelligence Survey, only 17% of financial services organizations deliver projects on time - and only 20% deliver projects on budget - at least 90% of the time.

The smartest financial services firms use formalized project management practices to gain strategic and regulatory advantages. The Economist Intelligence Unit, in partnership with Oracle, conducted new research that will help financial services executives ensure successful governance of project portfolio planning and execution, and avoid failure. 400 Senior executives in the financial services industry were interviewed and asked for their views on how to achieve greater success. The key findings are highlighted in a report and discussed in a webcast. You can also benchmark your own performance by completing the EIU Benchmarking Survey" Project Oversight in Financial Services".


About

Information and insights on EPPM trends and best practices.

Stay Connected


Twitter

Search

Archives
« April 2014
SunMonTueWedThuFriSat
  
1
2
3
4
5
6
7
8
9
10
11
12
13
15
17
18
19
20
21
22
23
24
25
26
27
28
29
30
   
       
Today