Dec 16, 2013

Business Remodeling: Rethinking Risk Management & Enterprise Analytics

Watch the Video: Business Remodeling - Rethinking Risk Management & Enterprise Analytics

Adapting to regulatory change and difficult market conditions has forced a shift in risk management approaches. Performance requirements coupled with a broad spectrum of Credit and Market risk analyses, and regulatory-induced requirements for transparency have forced institutions to seek better ways to manage complex and computationally demanding activities within Capital markets, from an enterprise-wide perspective.

In this video blog, Satyam Kancharla, SVP and Chief Strategy Officer of Numerix encourages institutions to rethink analytic infrastructure - to look at business and trading operations including collateral management, product control, model validation and front office requirements more holistically.

Weigh in and continue the conversation on Twitter @nxanalyticsLinkedIn, or in the comments section.


Video Transcript: Business Remodeling: Rethinking Risk Management & Enterprise Analytics

(Host): Financial Regulation is changing the market landscape. Satyam Kancharla of Numerix spoke with John Lothian News about how firms are reshaping themselves. Not only to comply with new rules, but make their businesses more efficient through a more holistic approach.   

Satyam Kancharla (Guest): It’s critical for many of these institutions now to handle collateral better and handle collateral optimization. So what I see happening as a result of this is really the front and the middle office, and even in some aspects the back office, all of these elements coming together into pre-trade analytics, into one set of enterprise level analytics if you will. And a lot of institutions are looking at it also as an opportunity to change the technology foundations of their analytic infrastructure and rethink how analytic infrastructure or technology should be organized.

While the focus for the last several years has been on responding to change, responding to regulation, I’ve seen increasingly the focus going forward being how businesses is reorganized or reconfigured if you will, to operate in this new environment in a more profitable way, in a more sustainable way. It’s not merely responding to regulation but really, rethinking many businesses. Rethinking the relationship between risk and collateral management, product control, model validation of front office. So a lot of activity going on in that area.

Looking at business and looking at trading more holistically, for a bank, to look at not just P&L as measured in the front office, but also looking at the capital impact, looking at the counterparty risk impacts and looking at funding impacts and collateral impacts – these are real business concerns that will distinguish organizations that thrive in this new environment if you will, versus those that have a challenge.

Blog Post - Nov 07, 2011

Modeling Wrong Way Risk in CVA for Traders and Risk Managers

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