Financial institutions are confronted with a large number of new regulatory requirements in the market risk environment. As a consequence, the demands on data management are also increasing. This affects the granularity of data, its quantity and quality as well as its cross-divisional consistency. At the same time, banks are faced with the challenge of having to organise their IT systems more cost-efficiently - a consequence of increasing competitive pressure and the low interest rate environment.
However, the current development is also a catalyst for the reorganisation of IT architecture in market risk. New technologies offer great potential, even beyond legal and internal requirements, such as the "data lake" for centralised trading data or the "machine learning system" for analysing historical simulations.
Further opportunities for action can also be derived from the outsourcing of individual services or entire service units, as well as from the consolidation of functions within a bank - always with the aim of positioning the institution sustainably.
