Threat to US Financial Institutions: TowerGroup Estimates Projected IT Spend

NEEDHAM, MA, August 3, 2004 � The Department of Homeland Security and the White House warned of a possible threat against specific buildings of specific financial institutions. Not since the World Trade Center attack has there been such a large amount of attention to the potential vulnerabilities of US financial institutions and the US financial system as a whole. Business continuity plans are being invoked and every precaution is being taken to ensure physical security of the individual locations.

TowerGroup estimates that this latest terror threat is now raising the projected IT spending in the field of operational resilience to a higher annual growth rate of 9.4% over the next three years. As firms are once again reminded of the priorities of ensuring uninterrupted business operations and customer service in the face of massive destruction, this warning will serve as a critical business reason to continue to fund operational resilience budgets.

About TowerGroup: TowerGroup is the leading advisory research and consulting firm focused on the global financial services industry. A respected source for trusted information and advice, TowerGroup brings many of the world’s largest financial services, technology and professional services firms a deeper understanding of the business and technology issues impacting their organizations. Headquartered near Boston in Needham, Massachusetts, and with offices in New York, London, and Kuala Lumpur, TowerGroup serves a global client base. Visit TowerGroup online at