The financial crisis revealed the inadequacy of banks’ risk data systems, with institutions frequently unable to provide up-to-date reports on risks and exposures. This undermined confidence and led regulators to focus on the quality of risk data and supporting systems and processes.
Most banks do not aggregate, store and analyse data in a coordinated fashion. Reports are often compiled manually at great expense, are inaccurate and/or incomplete, and arrive too late to influence trading and operations. It can take as long as 60 days to compile a group-wide set of risk figures.
- Do you have a fully automated system for collecting and analysing data?
- Is there a single owner of all your risk data?
- Have you defined your organisational risk architecture?
- Are you confident about the accuracy and timeliness of risk data reporting?
This article is an extract from Frontiers in Finance – Data, analytics and technology from May 2014.