The Risk Data Agenda: A New Priority
Banks have historically paid insufficient attention to a key ingredient of their success – data. The results are predictable. Bank performance is limited by the completeness, consistency, timeliness and accuracy of its data in numerous ways. In our experience, bank profits are penalized by up to 10%, while the global financial crisis illustrated the importance of high quality data for effective risk management. This paper examines common underlying factors behind poor risk data and reporting and outlines three steps banks can take to plot a way forward and stay ahead of the race.
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 based 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 a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].
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Table of Contents
2. Identify Business Benefits
3. Strategy and Implementation Plan
Appendix: The 14 BCBS Principles for Effective Risk Data Aggregation and Risk Reporting