Senior execs ‘risk dismissal over data management’
Written by Peter Walker
Research among fund managers has revealed that 71 per cent believe the number of chief executives, finance directors or very senior executives being fired as a result of poor data storage and management will increase over the next three years.
This is according to a survey of 30 top fund managers, conducted last month by data visualisation company Zegami, which found that 90 per cent saw the number of companies being fined for this increasing, with 23 per cent predicting a ‘dramatic rise’.
How organisations manage and use their data is becoming increasingly correlated to how they perform, according to the research. Over the next three years, 62 per cent of fund managers expect this correlation will increase – something which helps explain why 61 per cent of respondents now believe that when analysing companies, fund managers are placing a greater focus on how they manage and store data.
Roger Noble, founder and chief technology officer at Zegami, said: “How organisations store, manage and analyse their data is becoming ever more central to their performance and how they are viewed by fund managers.
“Those not placing enough focus on the security and quality of their data not only face a growing threat of legal action or even losing their jobs – it is organisations like this that will be increasingly left behind.”
Last year’s move from the Approved Persons Regime to the Senior Managers and Certification Regime brought much stricter scrutiny on data use, and crucially, more personal responsibility to named senior managers for failings in this area.
The Financial Conduct Authority and the Prudential Regulation Authority’s first use of the powers – fining Barclays Group chief executive James Staley a total of £642,430 for failing to act with due skill, care and diligence - led regulatory experts to suggest many senior financial professionals may move to the relative safety of FinTech.