With a persistent low growth environment, myriad of regulatory obligations and most banks running after a finite set of “good” customers, bank profitability is...
With a persistent low growth environment, myriad of regulatory obligations and most banks running after a finite set of “good” customers, bank profitability is under great pressure. One niche lever in the hands of the banker in such a challenging environment is pricing. Going by the business model in a competitive environment where a new entrant is expected to have very aggressive pricing, there is the strategy aspect for the other incumbents, who need to use price to retain...
With a persistent low growth environment, myriad of regulatory obligations and most banks running after a finite set of “good” customers, bank profitability is under great pressure. One niche lever in...
In 2013, the Bank for International Settlements wrote that many banks lack “the ability to aggregate risk exposures and identify concentrations quickly and...
In 2013, the Bank for International Settlements wrote that many banks lack “the ability to aggregate risk exposures and identify concentrations quickly and accurately at the bank group level, across business lines and between legal entities.” Translation? Financial institutions as a whole have become so complex and the products they sell have developed at such a rapid pace that their own risk infrastructure has not kept pace. FI’s systems don’t provide a true picture of...
In 2013, the Bank for International Settlements wrote that many banks lack “the ability to aggregate risk exposures and identify concentrations quickly and accurately at the bank group level, across...
When it comes to regulatory reporting, financial institutions feel increasingly boxed in. On one hand, the number, frequency, and complexity of reports...
When it comes to regulatory reporting, financial institutions feel increasingly boxed in. On one hand, the number, frequency, and complexity of reports continues to spiral, especially for global financial institutions. At the same time, regulators are strongly encouraging firms to spend more time on analysis and review, such as the U.S. Federal Reserve’s guidance that financial institutions spend 80% of the time allocated for regulatory reporting on analytics/reviews and...
When it comes to regulatory reporting, financial institutions feel increasingly boxed in. On one hand, the number, frequency, and complexity of reports continues to spiral, especially for global...
Following the financial crisis, stress testing has become a central means of determining capital need for banks and the approach is here to stay. The industry’s...
Following the financial crisis, stress testing has become a central means of determining capital need for banks and the approach is here to stay. The industry’s response to this new paradigm has been a frantic development of capabilities, focused primarily on the methodological techniques that underpin robust financial projections. As highlighted in Oliver Wyman’s ‘Stress relief: Are vended systems the answer?’, stress testing will only increase in complexity and many banks...
Following the financial crisis, stress testing has become a central means of determining capital need for banks and the approach is here to stay. The industry’s response to this new paradigm has...
Just a year ago, we discussed the concept of Model Risk Management with you and how to tackle it using three lines of defense. The overall idea of Model Risk...
Just a year ago, we discussed the concept of Model Risk Management with you and how to tackle it using three lines of defense. The overall idea of Model Risk Management continues to grow and expand within a financial institution and we now bring you the key components for effective model risk management. Today, many financial institutions consider model risk a subset of operational risk, as model risk mostly affects the team that creates and uses the model. There are...
Just a year ago, we discussed the concept of Model Risk Management with you and how to tackle it using three lines of defense. The overall idea of Model Risk Management continues to grow and expand...
As discussed in our first blog about the Basel Committee on Banking Supervision’s rules aimed at strengthening risk data aggregation and risk reporting...
As discussed in our first blog about the Basel Committee on Banking Supervision’s rules aimed at strengthening risk data aggregation and risk reporting practices at banks (BCBS 239), we noted that regulators now want banks to be able to provide better, cleaner data more quickly than ever before -- something many banks continue to struggle with. And further, senior management now must take direct responsibility in the capture and aggregation of risk data. To do this...
As discussed in our first blog about the Basel Committee on Banking Supervision’s rules aimed at strengthening risk data aggregation and risk reporting practices at banks (BCBS 239), we noted...
Automating enterprise stress testing, like other complex IT undertakings, doesn’t lend itself very well to a “big bang” approach. The implementation of any IT...
Automating enterprise stress testing, like other complex IT undertakings, doesn’t lend itself very well to a “big bang” approach. The implementation of any IT solution to address a comprehensive regulatory mandate such as CCAR, DFAST or EBA Stress Testing all at once can be inherently risky, time consuming and very expensive. With regulators laser-focused on the governance and processes behind regulatory mandated stress testing, banks need to evaluate each major area of...
Automating enterprise stress testing, like other complex IT undertakings, doesn’t lend itself very well to a “big bang” approach. The implementation of any IT solution to address a comprehensive...
With the constant threat of financial crime, financial institutions must respond and adapt to changing market and consumer demands to solve regulatory,...
With the constant threat of financial crime, financial institutions must respond and adapt to changing market and consumer demands to solve regulatory, compliance, and fraud issues. Chartis, a leading provider of research covering the global market for risk management technology, recently released the 2014 Chartis Financial Crime Risk Management Report , a study on financial crime risk management systems, and ranked Oracle as a top provider of the solutions firms need to...
With the constant threat of financial crime, financial institutions must respond and adapt to changing market and consumer demands to solve regulatory, compliance, and fraud issues. Chartis,...
In today’s stringent regulatory environment with new standards and mandates coming to effect at a never-before seen pace, the mandate to keep up with regulatory...
In today’s stringent regulatory environment with new standards and mandates coming to effect at a never-before seen pace, the mandate to keep up with regulatory changes and ensure ongoing compliance with these changes is a priority. Furthermore, banks are facing increasing compliance complexity from the growth of regulations and ad hoc approach to compliance management. Due to the nature and levels of risks inherent to their business activities, tier 1 financial institutions...
In today’s stringent regulatory environment with new standards and mandates coming to effect at a never-before seen pace, the mandate to keep up with regulatory changes and ensure ongoing...
