Wall Street & Technology > ASPs > For Some, ASPs Are Worth the Risk > : "
When it comes to managing risk, Anthony Patti looks for technology that not only crunches numbers but also helps keep his costs down. That's why the managing director and chief risk officer for Americas at Merrill Lynch Investment Managers in Plainsboro, N.J. has turned to application-service providers for the provision of risk-management software. 'Generally, what we have found is that we're saving tons of money by using an ASP solution.'
That's because he doesn't have to worry about hiring technologists and maintaining infrastructure. 'It's saving us time and effort,' he says of the two ASP services, one from RiskMetrics Group and the other from Barra.
Firms that manage the task themselves 'can have anywhere from 10 to 40 machines running analytics and that can cost a lot of money' in implementation and maintenance costs, he explains. 'ASPs work great. They're very, very cost efficient.' "
ASP's are worth the risk if you audit their Business Continuity Plans. When was the last time your web site hosting supplier was down? Think twice about hosting mission critical applications without substantial testing and due diligence to weigh the severity and likelihood of a significant loss event.