Losses at financial institutions are often attributed to corruption, greed, or poor investment decisions. This is reflected in many of the established regulations and subsequent investment in risk management, and through the historical focus on managing credit risk, operational risk, liquidity risk, market risk and financial crime.
However, there is another key, but far less publicized, area where financial institutions invariably suffer significant losses: errors and misuse of computer applications developed by end users.
This report details the risks associated with End User Computing (EUC), as well as the potential consequences to financial institutions. It further discusses the importance of a quantified approach to EUC risk.