RiskTech Forum

Chartis: Integrated risk management: New tools for an old idea

Posted: 9 January 2015  |  Author: Philip Mackenzie  |  Source: Chartis

Integrated risk management has been the theme of 2015: the convergence of risk and compliance has been seen across almost every type of risk: from credit risk management, to financial crime risk management, to energy trading risk management.

While this concept of integrated risk is not a new one, the technology available is: advances in data management and analytics, including near-real time data management and the processing of unstructured data, are making the creation of consistent risk taxonomies possible, and are delivering risk information summaries through streamlined workflow and dashboarding capabilities. 

This is tying together with the growing recognition of risk management as something to be tackled at the C-Suite level: if enterprise-level business decisions are being made based on risk information, then that information needs to be aggregated and comprehensible, and capable of being drilled down into and analyzed from different perspectives on-demand, so that executives can see and understand the effects of their decisions. 

Compliance with regulation remains the most immediate driver for risk management transformation, and many technology vendors are prioritizing time to implementation (and therefore time to compliance) for their solutions. Agility and configurability are key requirements, and many vendors are beginning to market their solutions as software-as-a-service or compliance-as-a-service platforms.

However, there is a danger in investing in tick-box solutions to satisfy regulators, which are outdated as soon as a new regulatory requirement appears. The real business value in risk management lies beyond compliance, and in using new tools for old ideas.

Chartis recently published its 2015 RiskTech 100® report. To obtain the report please click here.