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All types and sizes of institutions can implement strategic risk management and
likely achieve significant performance improvements.
With no clear view of interconnected risks across the business, the answers to
these and other risk-related questions remain a mystery for many institutions. This
makes it difficult to refine and optimize strategies to increase performance, leverage a
competitive advantage and meet growth targets.
Legacy risk management solutions can also negatively impact regulatory
compliance, especially as new requirements emerge for stress testing institutional
strategies across a range of potential market scenarios. In particular, the inability to
understand all of the risks facing an institution may make accurate risk assessments –
and regulatory compliance – impossible to achieve.
All of these challenges can be daunting for financial institution personnel, who
may lack the specialized data integration and analytics sqills needed to successfully
implement strategic risk management. This is not only the case for small institutions,
typically constrained by budgets and staff, but also for departments in large financial
institutions, which traditionally operate independently with very little support for cross-
departmental data sharing or decision making.
