Future Finance

Risk Management: Avoid These Data Modeling Mistakes Upfront

21 Aug 2013

In my previous entry on August 13, I discussed what we can imagine to be a solid foundation to the Risk and Finance initiatives. Obviously, it is not just about the data model and that is the first point I would like to address today. Many vendors that strive to deliver a warehouse designed to service more than a handful of users within a business...

Future Finance

Four Components of Risk Management and Data Excellence

13 Aug 2013

In my previous blog, I addressed the new requirements of the new directive of risk data aggregation and risk reporting from the Basel Committee. In many of the banks I meet, the risk function tends to still be seen as a compliance function rather than an active part of the portfolio management of the bank (it is certainly true in developing countr...

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Future Finance

Basel Directives Ensure You're Not Kicking Can Down The Road

06 Aug 2013

Risk Managers and Risk Architects were enjoying a slow beginning to the year when the Basel Committee decided to release a new directive of risk data aggregation and risk reporting. Sure enough, no organization had in earnest thought of the right architecture for risk reporting. So while the new directive did set the scene for additional requiremen...

CCAR Stress Testing: The Devil Lies in The Data?

23 Jul 2013

So much has been written about the models being the source of all evils in the risk management space. Surely the breaking down of correlation matrices was responsible to a large extent in the erroneous assessment of the exposures and real risk being carried in the balance sheet of our financial institutions prior to the 2008 crisis. In his nominat...