Proactive IT Contingency & Risk Planning

Background

Our client, a leading UK based asset manager and private banking institution, relocated its investment management operations function from Europe to the UK. PryceWilliams was engaged to deliver the overall migration to the UK and as part of this project to ensure the relevant IT applications were available in the UK ahead of switchover to the new location.

Approach

We performed a review of the IT incident and change logs to understand what limitations existed in the BAU environment. A budget was allocated to address relevant IT enhancements, and this budget was overseen by the Project Board to ensure it was effectively managed.

The IT workstream was formed as part of the overall project delivery structure, and focused on the following:

• Validate BAU support constraints.
• Document requirements for the enhancement of BAU processes and IT applications.
• Assess processes and identify any gaps in controls.
• Facilitate new user system access and training.

Analysis

A risk assessment was performed of each activity that was supported by the relevant IT applications. This highlighted key issues that could be addressed in the short term and contributed to minimal delay in the switchover from the legacy location in Europe to the new location in the UK.

The PryceWilliams team also identified the opportunity to digitise key processes and introduce paperless operations and decommission legacy print services.

By the end of the analysis phase, the key requirements had been identified, documented and evaluated against a set criterion which included:

• Operational risk.
• Value for money.
• Potential future challenges.
• Impact on other key projects.

Conclusions

The PryceWilliams led project delivered the key requirements which led to significant improvements over the legacy environment, for example:

• All physical dossiers were replaced by electronic solutions, saving FTE hours and logistical costs.
• Print services were decommissioned further reducing annual costs and environmental impact.
• Enhanced system controls and monitoring delivered a valuable reduction in risk metrics.

To deliver successful outcomes it is prudent to:

• Focus on identification and management of risks early with a clear framework for mitigation of anything that falls outside BAU.
• Set explicit contingencies and embed IT SMEs from the start for regular light touch reviews.
• Leverage client tools and BAU resources to maximise efficiency and cost savings.
• Prioritise by impact and apply measurable risk-based analysis to expose benefits.

Recommendations

Based on the successful execution and lessons learned from this project, we recommend the PW Project Planning check to support any similar transformation initiatives that your organisation may wish to undertake. For example, the PW Project Planning check covers the following:

• Always assess areas of IT risk even for a change project that seeks to deliver everything via BAU processes. Prioritise on risk and evaluate change through a risk lens.
• Establish IT oversight at the planning stage and formal IT resource or budget contingency once planning is complete. Modest budgets prevent disproportionate delays and cost escalation.
• Embrace productivity toolsets and in-house best practice to ensure low cost, high collaboration, high impact delivery.

Next Steps

PryceWilliams provides specialist consulting and project delivery services for investment management firms with strategic change, regulatory compliance and technology transformation needs. Our focus is supporting the project sponsor to ensure project implementation is delivered on time and within budget. Should you need support, contact us to make progress happen.