I have been writing for the IFC Review for almost a year now on the subject of cloud computing and what the benefits and risks are to offshore financial services professionals in terms of data security and storage. I made the point that the commercial opportunities available from emerging technology are often exploited by business before the regulators have had time to determine the implications and address the need for new legislation and regulation. In other words, that they are continually playing catch up.
Looking again at the published article (Whatever happened to business as usual?) I noticed there was another article under the technology section and was interested to read the following:
“It’s pretty clear that financial regulation is driving data best practices across the industry. The bottom line is that the risks have never been higher, and you can’t afford not to be able to produce the myriad sets of data potentially required by a host of new regulations and regulators….” Fierce Finance IT reports.
That may at first seem like a contradiction – stating that financial regulation is driving data best practices across the industry but I think that’s right. Innovation is driving new practices and regulation follows modifying new practices to best practices.
If we accept that regulation will always follow behind the consequences of innovation and that the rate of innovation is going to continue to accelerate how will the regulators avoid being increasingly left behind?
Any ideas? Please write in the comment box below, thanks.
