RiskTech Forum

SAS: Risk and Return: Striking the Right Balance The role of business analytics in transforming banking

Posted: 17 August 2009  |  Source: SAS


Even if we have seen the worst of the financial crisis – and that is by no means certain – we now have to contend with a global economic slowdown, which in many countries has become a recession. This series of unprecedented events has thrown up numerous challenges for us in all sectors of financial services – retail, private banking, wealth management, corporate, wholesale, capital markets, insurance, investment management and securities services. These threats, combined with the damage to our industry’s reputation, jeopardize many organizations’ survival, let alone prosperity.

Now every one of us in the industry is striving to redress the balance between risk and return, and between short- and long-term objectives. There has been no shortage of comment from the industry, regulators, standard-setters and governments on the causes of the crisis and the remedies. Whatever the ultimate consensus, banks must transform themselves to meet the new realities. Forward-thinking financial institutions will move vigorously to address five key areas:

As executives charged with the task of putting banking on a new commercial course, you need to be armed with trustworthy, complete facts and analysis. For that, the institution needs to adopt a business analytics framework. Decisions will then be based on reliable information and predictive insight – adjusted for known risks across the institution’s business units, functional areas and channels.

The technology to achieve this vision is available today. This paper looks at these five areas and how business analytics can redefine the possibilities.

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