Skip to Main Content
The REGTECH Book
book

The REGTECH Book

by Janos Barberis, Douglas W. Arner, Ross P. Buckley
August 2019
Intermediate to advanced content levelIntermediate to advanced
392 pages
14h 11m
English
Wiley
Content preview from The REGTECH Book

Old Tech + New Tech = RegTech: Excel Spreadsheets and End User Computing in a Regulated World

By Brendan Bradley1 and David Jones2

1Chairman, ipushpull

2CTO, ipushpull

In the 2012 ‘London Whale’ trading debacle, JPMorgan suffered a loss of at least $6 billion on a portfolio of credit default swaps. The bank’s internal report1 into the event described how misuse of Microsoft Excel spreadsheets had contributed to the loss. A set of Excel spreadsheets was being used to manage the risk on the portfolio. The risk management process was manual and involved copying and pasting data from one spreadsheet to another. More importantly, a calculation error in the spreadsheet had the effect of underestimating risk by half.

This scenario is all too familiar within financial institutions (FIs), where tools like Excel, Access, and MatLab are widely used by non-developers to implement end user computing (EUC) solutions. Regulators have recognized the risks that EUC solutions pose and have issued regulations aiming to oblige banks to monitor and control their use. In this chapter, we examine the regulations that aim to mitigate the risks of EUC solutions. We look at how FIs use EUC solutions and why this is likely to continue, and we summarize the RegTech solutions that can help banks implement these regulations.

Which Regulations Apply to EUC Solutions in Financial Organizations?

A number of recent regulations apply to spreadsheet usage within FIs. It is important to note that they do not ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

The PAYTECH Book

The PAYTECH Book

Susanne Chishti, Tony Craddock, Robert Courtneidge, Markos Zachariadis
The INSURTECH Book

The INSURTECH Book

Sabine L.B VanderLinden, Shân M. Millie, Nicole Anderson, Susanne Chishti
The WEALTHTECH Book

The WEALTHTECH Book

Susanne Chishti, Thomas Puschmann

Publisher Resources

ISBN: 9781119362142Purchase book