5 reasons not to procrastinate on reforming enterprise risk management

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    16-Apr-2017

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  • 5 reasons not toprocrastinate on

    reforming enterprise risk management

  • With the deadline for the fundamental review of the trading book (FRTB) implementation looming, only 15 percent of banks say they are ready to roll out an enterprise risk management system, according to the Chartis 2016 Global Survey Results. However, completing such an overhaul takes a significant investment, from meeting capital requirements to addressing infrastructure challenges in the way of reporting, testing and tracking. How can banks be prproactive about establishing a solid, efficient risk framework? Here are five reasons not to delay the process.

    Only 15 percent of banks say they are ready

    IBM Analytics

  • Think of infrastructure reforms as a Maslows hierarchy of critical dependencies. Banks need higher quality data to feed the more sophisticated risk analytics that will be aggregated into reporting for more actionable insights. To extract actionable insights, such reporting requires a quality user experience.

    For data sets to be accurate, you need to have order.

    1.

    IBM Analytics

  • Many banks still remain in the planning and impact assessment phase and should rapidly be moving into the implementation phase if they hope to comply before the deadline.

    Regulatory compliance takes time.

    IBM Analytics

    2.

  • Bigger banks are struggling with directing sufficient resources to handle their sheer volumes of data, smaller banks with less data are still starved for assigning resources on projects that will yield the biggest ROI. Only 15 percent of the 100 banks surveyed by Chartis say they are ready to launch a revised risk framework ahead of the deadline.

    Regardless of size, banks face similar challenges.

    3.

    IBM Analytics

  • Deliver insights on-demand to business users across the front office, middle office and strategic planning. For banks to succeed, many departments should be aligned on implementing an efficient infrastructure that meets both business needs and regulatory requirements.

    Use all your players.

    IBM Analytics

    4.

  • The regulatory deadline poses an opportunity to rethink and implement a new infrastructure for risk data and analytics. Transforming the technological foundations of risk analytics takes ongoing investments in time and capital.

    Be prepared for the long term.

    IBM Analytics

    5.

  • Read the Chartis 2016 Global Survey for insights from your banking peers into successful implementation of FRTB.

    Learn here how IBM can help your bank meet and overcome FRTB challenges.

    ibm.co/ChartisFRTB

    ibm.co/tradingbook

    Copyright IBM Corporation 2016. IBM, the IBM logo and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at Copyright and trademark information at www.ibm.com/legal/copytrade.shtml.

    http://ibm.co/ChartisFRTBhttp://ibm.co/tradingbook

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