According to Ashley Alder, chief executive of Hong Kong’s Securities and Futures Commission, the remote working policies put in place due to the Coronavirus outbreak pose operational risks for financial institutions. During lockdowns, the regulators relaxed rules and allowed staff at financial institutions to work from home. Now, banks and regulators are reviewing the practices that they put in place as they consider returning to work in the office.
“Some of the technology infrastructure isn’t particularly well adapted to working from home… no doubt that there is an increase in operational risk, notwithstanding the fact that it has gone well so far,” said Alder. He also said that regulators may allow these arrangements to continue, even after the pandemic is over. “Working from home, with a degree of flexibility from regulators, went far better than we people would have thought. We do think that many of those operational accommodations may continue.”