That is especially important in automated high frequency trading (HFT) where a flawed model can lead to immediate losses, as MathWorks says.

FORBES: Financial Models Bog Down in Corporate Bureaucracy

Testing in finance can be fairly ad hoc, said Steve Wilcockson, industry manager for financial services at MathWorks, and it varies by location and industry segment.

FORBES: Financial Models Bog Down in Corporate Bureaucracy

MathWorks suggests some ways to speed the process of model integration, including taking models directly into production rather than recoding them, and rationalizing the development and implementation process.

FORBES: Financial Models Bog Down in Corporate Bureaucracy

MathWorks did not address ways to reduce the bureaucracy.

FORBES: Financial Models Bog Down in Corporate Bureaucracy

The MathWorks survey reported that 82 percent through slow model development will result in firms lacking the agility to respond to market changes, and 74 percent believed it would result in ineffective risk management.

FORBES: Financial Models Bog Down in Corporate Bureaucracy

Although financial firms think their models are an important part of their success, development and deployment of new models is often bogged down in bureaucracy, according to survey results released today by MathWorks, the UK developer of MATLAB and Simulink.

FORBES: Financial Models Bog Down in Corporate Bureaucracy