People the weakest link
January 18, 2018

People are the weakest link, argues Ciaran Whooley, Head of Client Services EMEA at Linedata, in an essay on the top five operational risks in fund administration:

Despite recent technological advancements, the world of fund administration is essentially still a people industry. Some examples of poor management still exist, particularly around operational risk and controls. Staff who lack the right qualifications and training increase the probability of errors, and administrators can be demotivated by monotonous and tedious workflows.

An unhealthy corporate culture often results in high staff turnover rates and key person dependencies. The over-dependence on key employees, errors and performance failures can be significantly reduced by a continual drive to maximise automation, providing transparent business process management and strong oversight controls.

The motivation, empowerment and education of employees, with related accountability, provides the strongest first line of defence against operational risks, he advises. The best run fund administrators are those that consistently invest in their people as well as their technology.

Other areas identified as preventing the biggest operational risk to fund administration in 2018 are cyber risk and data security, compliance failures, utsourcing and offshoring and political & economic triggers.





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People are the weakest link, argues Ciaran Whooley, Head of Client Services EMEA at Linedata, in an essay on the top five operational risks in fund administration:

Despite recent technological advancements, the world of fund administration is essentially still a people industry. Some examples of poor management still exist, particularly around operational risk and controls. Staff who lack the right qualifications and training increase the probability of errors, and administrators can be demotivated by monotonous and tedious workflows.

An unhealthy corporate culture often results in high staff turnover rates and key person dependencies. The over-dependence on key employees, errors and performance failures can be significantly reduced by a continual drive to maximise automation, providing transparent business process management and strong oversight controls.

The motivation, empowerment and education of employees, with related accountability, provides the strongest first line of defence against operational risks, he advises. The best run fund administrators are those that consistently invest in their people as well as their technology.

Other areas identified as preventing the biggest operational risk to fund administration in 2018 are cyber risk and data security, compliance failures, utsourcing and offshoring and political & economic triggers.



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