Risk Data and Digital Risk
We help organizations re-engineer risk management with targeted and rapid digitization. Our unique end-to-end approach combines robust data management, innovative technology solutions, advanced analytics, and a deep understanding of broad architecture disciplines.
Banks today face increasing regulatory pressure and supervisory actions, causing costs for risk management and compliance to skyrocket. Simultaneously, they face a diversity of new threats, particularly in cyberspace, significantly increasing the size of potential losses. It has become a strategic imperative to manage scarce resources in shorter time frames, with deeper analytics and robust scenario analysis.
We are at the forefront of working with organizations to digitize their risk functions, helping them transform risk management to improve operational efficiency and effectiveness while enhancing the quality and speed of decision making. This strengthens not only risk management but also overall financial management, through higher-quality data, better data governance and architecture, and improved processes and analytics.
What makes us distinctive
A unique combination of skills and experience. We have an unparalleled end-to-end view of risk management processes, combined with a proven digital delivery capability and market-leading expertise and methodologies in data management and analytics. These capabilities, along with deep operational expertise across a range of sectors, leading-edge technology experience, and a finger on the pulse of emerging innovations in financial technology and regulatory technology, make us an invaluable partner for our clients.
A diverse tool set. We have collaborated with the Institute of International Finance industry working groups, and supervisory bodies to address risk data, operating models, technologies, and organizational structure. Our resulting tool set includes diagnostics for assessing our clients’ current risk data and technology capabilities, digitization and analytics potential, and tools to help clients adopt architectures built on sound practices for infrastructure, applications, and data. Using these tools, we help clients reduce capital demand, enhance liquidity management, enhance reporting capabilities, improve transparency and decision making, increase operational efficiency, and develop more rapid and accurate pricing processes.
How we help clients
We support many financial institutions, including some of the world’s largest banks, in their digital risk transformations by helping them turn digital opportunities into business impact through three pillars:
- Process digitization and analytics.We work with clients to prioritize and implement digitization opportunities across the landscape of risk types and risk activities. Take credit risk. We worked with one client to digitize the credit process to deliver a credit decision in under a day, rather than the usual three or more days. In another example, we streamlined the application process to move from over 95 percent manual decision making to 90 percent straight-through processing. But credit risk is just one area; others include operational risk, conduct and compliance, digital risk reporting, and front-to-back digitization of stress testing, including the Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act stress testing (DFAST) in North America, as well as stress tests in Europe. Our unparalleled process expertise and agile delivery capabilities allow us to provide a full suite of digital solutions that increase business value.
- Data and reporting. We help clients define their strategic approach to data for risk and financial management, lay out their implementation road maps in line with regulatory, business, and risk management requirements, and then rapidly implement these recommendations. This includes building capabilities in data and reporting governance, technology solutions, and architecture. We help financial institutions comply with relevant data regulations, such as Basel Committee on Banking Supervision (BCBS) 239, and help them create value for their business in the process.
- Risk infrastructure and architecture. We help clients define and implement the target states for their risk infrastructure and architecture. This includes setting up data lakes and simplification plans to standardize, descope, and rationalize data systems, creating significant business value and enabling clients to use data as their key strategic asset.