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EWRM Gap Analysis Challenge: Banks are facing increasing pressure from regulators, rating agencies shareholders to improve their ability to accurately measure and manage their risk on an enterprise-wide level. A comprehensive risk management function within the bank should include having the right expertise within the bank, risk systems to drive the calculation of key metrics and a robust data system for capturing the data necessary to support those systems and metrics. Depending on the bank’s current sophistication, achieving all of this can be daunting. To complicate matters further, the bank’s decision makers and the external constituencies may have numerous, and often competing views, on which aspects of risk management to prioritize. Solution: ERisk provides a comprehensive Enterprise-Wide Risk Management (EWRM) Gap Analysis to help banks develop a best-in-class risk management function. The process begins with a visioning session where ERisk consultants interview the bank’s senior executives to identify the key risk based decisions it would like to make. ERisk will work with the bank to ensure that they have the necessary expertise and organizational structure to internally support and promote these risk management objectives. Importantly, ERisk will also make recommendations on the types of models that the bank must put in place or, in some cases, revisions that may need to be made to existing models. Furthermore, ERisk will describe analyses that should be conducted to support and parameterize those risk models and the data necessary for the analyses. Lastly, ERisk will examine the bank’s available data and existing benchmarks, to make recommendations on how to improve data collection so that it can best support the analyses, models and decisions that rely on it. Benefits: An EWRM Gap Analysis provides banks with a prioritized, descriptive list of current shortcomings in the risk management function, as well as a roadmap and cost estimate for achieving best practice enterprise-wide risk management. These deliverables allow the bank to make some “quick wins” to enhance their risk management function and develop a long-term strategy to tackle the more complicated improvements.For more information please contact us. ©2008 Sungard. All rights reserved. Legal Information |