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
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
The full report is available for download.
- 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