The Importance and Criticality of Spreadsheets in the City of London

TL;DR

This paper reviews the extensive use of spreadsheets in London's financial sector, highlighting their critical role and the associated reputational risks due to lack of control and oversight.

Contribution

It provides insights from senior practitioners on spreadsheet usage in financial markets and emphasizes the need for better management to mitigate risks.

Findings

Spreadsheets are vital in supporting major financial transactions.

Uncontrolled spreadsheet use poses significant reputational risks.

The paper advocates for improved oversight and control measures.

Abstract

Spreadsheets have been with us in their present form for over a quarter of a century. We have become so used to them that we forget that we are using them at all. It may serve us well to stand back for a moment to review where, when and how we use spreadsheets in the financial markets and elsewhere in order to inform research that may guide their future development. In this article I bring together the experiences of a number of senior practitioners who have spent much of their careers working with large spreadsheets that have been and continue to be used to support major financial transactions and manage large institutions in the City of London. The author suggests that the City of London is presently exposed to significant reputational risk through the continued uncontrolled use of critical spreadsheets in the financial markets and elsewhere.