Credit Risk Management Systems 2007 –
Getting Value from Basel II
| June, 2007 - Doc # RR0702 | Research Report |
| Number of pages - 76 | Price: $2250 |
| Number of figures & tables - 27 |
Overview
Getting value from Basel II – new research on Credit Risk Management Systems
New research by Chartis reveals that the banking industry has switched its attention to getting a return on its investments in credit risk technology. Chartis sees a segmentation in the market. On the one hand, established sectors such as tier 1 and tier 2 banks in EU and North America are leveraging their investment in risk technology to produce integrated risk and finance capabilities covering such areas as economic capital, ALM and risk-based performance management. On the other hand, emerging regions such as Asia, Middle-East, African, Eastern Europe and Latin America are using the lessons learnt from the EU and North American banks to implement efficient and “future-proof” credit risk management systems. Chartis comments that the key lessons from the long, expensive and tactical Basel II projects of the last few years are:
- Look beyond Basel II to define data requirements
- Avoid having a piecemeal approach to regulatory reporting
- Define the final architecture on an integrated set of business requirements
- Define key metrics upfront
- Consider the most complex asset classes in detail
- Consider a step-by-step approach
- Don’t underestimate the data integration, stress testing and model validation steps
- And choose vendors with deep domain knowledge and experience
With regards to the vendors for credit risk technology Chartis considers Algorithmics, Fermat, FinArch, Reveleus, SAS and SunGard to be the established leaders.
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