Dean Clark: Cloud migration has enormously impacted risk management in financial services institutions. These technological advances have enabled scalable, highperformance computing that was previously unattainable.

By utilising cloud-native architectures, financial services organisations are now able to process huge datasets in real-time, apply advanced AI-driven risk models and predictive analytics to perform a number of key tasks, detect fraud, optimise liquidity and enhance regulatory compliance. Previously, legacy infrastructure limited risk calculations to overnight batch processing. Now, realtime scenario simulations and stress testing are instant.

The cloud’ s elasticity and resilience also enable firms to dynamically scale risk functions, integrate diverse data sources and respond to market shocks with unprecedented agility.

Richard Harmon: Both banks and financial market infrastructures( FMIs) move applications and services to the cloud as much for greater flexibility or time to market as for cost reduction.

Cloud environments provide firms with the scalability and flexibility to support on-demand real time analytics that is critical for intraday risk management during periods of excessive market volatility.

This provides firms with the ability to accelerate responses and update models that improve their ability to manage risk exposures that protect not only the institution but its institutional customers as well.

Barath Narayanan: Cloud-hosted risk management solutions enable financial institutions

92 April 2025