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Making strides in financial services risk management - Transparency and data - EY - Global

Making strides in financial services risk management

Transparency and data

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“Like everyone else, we spent immense amounts of money on Basel over the last seven years, and we are planning to spend a lot more going forward on IT and the risk framework.” – Survey respondent

For the majority of banks surveyed, improving the quality, accuracy and timeliness of information and processes to support risk management is a work in progress.

As part of multi-year efforts to develop the strategy and to enhance transparency, banks have intensified their scrutiny of risk across the organization. They've also broadened the distribution and increased the depth and frequency of risk reporting.

New metrics have been introduced and several areas are targeted to help raise the level of transparency, from stress testing to counterparty risk and liquidity.

Common challenges that organizations face range from systems and data requirements to methodologies, metrics and culture.

To meet the objective of increased risk management practices, banks are spending more to support the risk architecture. Spending increases are also the result of changing regulatory requirements – a trend expected to continue as a host of IT activities are underway, from improvement of data quality and management, to aggregation of group data.

Areas of increased transparency

IT activities complete, planned and underway

IT spend increase

IT anticipated spend

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