The effects of the global financial crisis are still being felt today. As markets struggle to recover, financial institutions face a new wave of regulations that aim to strengthen risk management practices and stabilise global economies. However, these reform measures are having a dramatic impact on the financial industry - profitability and growth are near stagnant. The search for new risk management techniques is on-going, and substantial investments are being made into smarter and faster technologies. The right system would ensure banks and other financial institutions become compliant, as well as allow them to take advantage of market opportunities. The industry recognises that there is a long way to go to improve all areas of risk management, but the right steps are now being taken.
This white paper reviews current risk management practices of the financial industry. It looks at the challenges that banks face when implementing the necessary regulatory changes to remain compliant. Additionally, it explores a number of new risk management processes and technologies being employed, pointing out potential benefits and pitfalls of each.