Young Professionals: Soraya Grarji (AF Advisors)
The world in which investors operate has become more complex and unpredictable in a short space of time. Geopolitical tensions, technological developments and structural transitions are increasingly shaping the agenda. Financial Investigator asked young professional Sorarya Grarji, Analyst at AF Advisors, how she experiences these developments in her day-to-day work. He wrote this article in a personal capacity.
By Daan Nijssen
Which geopolitical development currently has the most influence on your work, and how?
‘The unrest surrounding the American takeover of Solvinity, which is crucial to the functioning of DigiD, shows how vulnerable (semi-)public services become as soon as essential links fall outside European regulations. Those who do not control the digital infrastructure also surrender geopolitical resilience.
The financial sector is in the same trap. Banks and pension providers are increasingly relying on external IT service providers for business-critical processes. AI is accelerating this trend. The result: dependence on a handful of dominant providers, often outside the EU. As the AFM and DNB have repeatedly warned, this creates considerable systemic risks: an incident at such a supplier can affect entire sections of the sector and thus jeopardise the stability of the system. Intervention or obligations from the home country, for example through legislation, sanctions or executive orders, can also have an impact. If vital processes run on non-European infrastructure, these risks become structural, including for the financial sector.
Those who do not control the digital infrastructure also surrender geopolitical resilience.
Digital autonomy therefore requires more than just attractive policy documents. We therefore support the establishment of a proportionate ICT risk management framework to provide the board with insight into ICT-related risks and cyber threats.
In addition, we negotiate outsourcing contracts that are both legally enforceable and operationally feasible. This requires clear agreements on data processing, continuity and exit provisions, among other things. In this way, risks are limited and, if they do arise, identified and mitigated.
Finally, our work requires us to stay constantly up to date with new regulations, such as the AI Regulation. This enables us to advise our clients in a timely manner on appropriate policies, business processes and supervisory expectations. Digital autonomy is therefore not a project for the future, but a task for today.’
Read the original special in Financial Investigator magazine