Banks must build an efficient and technically flexible infrastructure as a basis for risk management. This is the only way they will be able to meet increasing competition, market fluctuations, rising interest rates, ESG risks and constantly higher regulatory requirements and increase their resilience.
Many banks already have modernisation initiatives on their risk management transformation agenda to address the issue of outdated and inefficient infrastructure. They are aware of the challenges of their existing IT landscapes, which usually consist of monolithic applications, in-house developments and numerous end-user tools - the latter to replace any missing functionalities in the larger applications.
However, due to fragmentation, such an infrastructure is only to a limited extent able to efficiently contribute to comprehensive risk management. This makes it more difficult to gain a holistic view of all risks and to take concrete management measures. In addition, an outdated risk infrastructure is usually associated with high costs, both in operational terms and with a view to the possibility of adapting to new requirements in short technology cycles.
To counteract this, many banks are currently undertaking a comprehensive consolidation and modernisation of their risk infrastructure, with the main aim of expanding the deployment options while increasing the flexibility and scalability of their current infrastructure.
In our white paper “How CROs Can Benefit from Modern Risk Architectures”, we provide an overview of the key technological aspects that can help achieve these goals and show what decisions CROs should make now to prepare the technical infrastructure of their financial institution for the future.
You can download the white paper here:
Dr. Heiko Carstens
Partner, Financial Services
KPMG AG Wirtschaftsprüfungsgesellschaft
Further Information (in German only)
Was sollte die Risikofunktion von Banken künftig leisten können? Wir haben vier Thesen für ein wirksames Risikomanagement aufgestellt.
Vier Thesen für ein wirksames und effizientes Risikomanagement