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Celent releases new report on innovative risk management

Posted: 21 April 2017 | | No comments yet

RiskTech and RegTech are making their way into risk management…

Celent releases new report on innovative risk management

Celent has released a new report titled ‘Risk Management Business and IT Outlook 2017: Traversing the Politics of Identity, Industrialization, and Innovation’.

Written by Cubillas Ding, a Research Director with Celent’s Securities & Investments practice, the report looks at the shift towards more intrusive, fragmented and data-intensive regulatory regimes, which require firms to push the envelope to achieve economies of scale, operational consistency, and transparency to be embedded as much as possible in financial services business models.

Macropolitical and social risks are now important considerations for risk managers

Alongside the weight of industry reform focused on risk, capital, and compliance requirements, financial institutions face a new world where the forces of industrialisation and innovation intermingle, set against potential fallouts from the recent tide of identity politics around populism and nationalism. Macropolitical and social risks are now important considerations for risk managers.

Not immune to the broader cost reduction agenda, risk and compliance functions are required to align to a bank’s strategic responses and contribute to firm-wide efficiency and cost-cutting targets, with the near-term focus on keeping regulators at bay and keeping the lights on. More institutions are pursuing efforts to reduce inefficiencies in risk and compliance activities, and to optimise an institution’s total cost of risk. The “industrialisation of supply chains” — risk data, risk models, and information production and reporting processes — will require firms to invest in emerging innovations, technologies, IT paradigms, and fintech partnerships in order to achieve a meaningful step change.

“RiskTech and RegTech players are entering this space in earnest, while forward-thinking financial firms are looking for innovation-enabled change to respond to regulatory and risk management challenges and ongoing cost pressures,” says Ding.

The new report can be read in full on Celent.com.

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