London, United Kingdom
5 December 2007

Managing Risk and Compliance: Responding to New Realities

Table of Contents

Return to report Abstract

Executive Summary 03
Introduction 05
Market Developments 07
  The Global Big Four: AML, Financial Reporting, Accounting Standards, and Basel II 07
  Balancing Multiple Stakeholder Demands 10
  Changing Paradigm and Portfolio-Driven Activities 11
Foundations for New Realities 14
  Optimize to Uncover Regulatory Synergies 14
  Align Operations with Data-Driven Operational Risk Assessments 16
  Evolve Towards Superior Risk Management and Economic Capital Management Capabilities 18
  Synchronizing Risk, Capital Management, and Performance Measurement 20
  Align Risk and Compliance Roadmap with IT Architecture 22
  Deploy Cohesive Data and IT Governance 24
Looking Forward: New Realities and Changing Market Dynamics 24
Conclusions 29
Appendix: Regulatory Capital vs. Economic Capital 30
 

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

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