Consumer credit risk management
has traditionally been viewed as an operational task, dependent on market analysis and qualification tools to assess. However, businesses are increasingly turning to technology to rein in their risk exposure. Specifically, a company's IT infrastructure contributes to a major portion of its operational risk management, but a substantial number of financial decision-makers fail to recognize the value of their IT budgets. According to a survey released this week by consulting firm Alfabet, only 4 percent of decision-makers weigh their IT budget according to an overall business strategy or IT portfolio analysis. On the contrary, a whopping 90 percent of these professionals base IT budgets on arbitrary industry benchmarks or budgets tweaked slightly from the previous year. "The study confirms our experience; in order for IT to support business it is vital to align relevant decisions with overall business strategy and to use reliable, up to date data that integrates all IT portfolios. Yet the study finds counterproductive conditions for most financial decision makers," states Erik Masing, co-founder and CEO of alfabet AG.