Data loads are expanding rapidly in the financial services (FS) sector as regulations proliferate and more powerful analytical technologies come to market. This is driving a renewed focus on risk data aggregation and reporting (RDAR) solutions, as financial institutions (FIs) seek to collect and integrate trusted data more fully into their businesses. These days all data is risk data and FIs should treat it as such.
A non-siloed approach is necessary to reflect inter-connectedness and allow regulators to access capital and collateral data more quickly and run stress test scenarios as required under Basel 3 and national regulations like the US Dodd-Frank Act. Business benefits also accrue for FIs that have good RDAR infrastructures. Better data is not just a compliance process, it delivers performance, analytical accuracy and risk management benefits. The RDAR market is now worth $10.46bn according to Chartis’s separate Global Risk IT Expenditure 2016 report, which aggregates all the firm’s 2015 research to derive a global risk IT spend figure and segment breakdowns for 2016.
During the research process for the RDAR report, Chartis gathered feedback from 104 institutions, involving 30 qualitative face-to-face interviews with FIs and 74 participants in the 2015 Chartis RDAR Systems Survey.
The crucial regulatory driver on large FIs’ immediate horizon is BCBS 239: Principles for Effective Risk Data Aggregation and Risk Reporting, which are part of Basel 3 and came into force for Global Systemically Important Banks (G-SIBs) on 1 January 2016. The 14 principles, covering data accuracy, timeliness and policy concepts such as governance, could provide an RDAR framework for the future, but none of the banks have met the deadline.
Regulators need a reality check and better understanding of how long compliance will really take.
This report from Chartis provides an independent evaluation and description of leading practices from Oracle as well as its competitive position in the market using the RiskTech Quadrant® for RDAR.
This report also includes a brief look at:
- The demand side trends outlining key business and regulatory challenges.
- The supply side focusing on the technology landscape for RDAR.
The RiskTech Quadrant® uses a comprehensive methodology of in-depth independent research and a clear scoring system to explain which technology solutions meet an organization’s needs. Chartis considers Oracle to be one of the leading vendors of RDAR.