The Risk Data Agenda: A New Priority

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
June 4, 2013
Industry Trends
Global

Abstract

Banks have historically paid insufficient attention to a key ingredient of their success – data. The results are predictable. Bank performance is limited by the completeness, consistency, timeliness and accuracy of its data in numerous ways. In our experience, bank profits are penalized by up to 10%, while the global financial crisis illustrated the importance of high quality data for effective risk management. This paper examines common underlying factors behind poor risk data and reporting and outlines three steps banks can take to plot a way forward and stay ahead of the race.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Introduction

3

1. Self-Assess

5

2. Identify Business Benefits

8

3. Strategy and Implementation Plan

9

Appendix: The 14 BCBS Principles for Effective Risk Data Aggregation and Risk Reporting

11

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