Security News > 2021 > June > Banks accelerating their risk management transformation

COVID-19's disruption has stretched risk management infrastructures to the brink, forcing banks to recalibrate their data, models and processes for stress testing, impact assessments, scenario analyses and more.

A global risk management survey by SAS and Longitude examines how banks are adapting their risk frameworks in response.

Only about 10 percent of banks have completely automated most of their risk management activities - and a mere 6 percent have fully automated large portions of the risk modeling processes - hindering their ability to forecast trends and improve decision making across the business.

These risk management leaders, as they're identified in the report, are defined by having more automated risk modeling and more advanced risk management capabilities via tools like scenario-based risk analytics, integrated balance sheet management and modeling-as-a-service.

The research shows the risk management leaders have already attained substantial long-term benefits from their risk technology investments, including the ability to forecast further ahead and complete various stress tests more rapidly.

"Banks know they must digitize if they hope to survive today's competitive and dubious landscape - and risk management has emerged as more critical than ever," said Troy Haines, SVP and Head of Risk Research and Quantitative Solutions at SAS. "A more digitized and automated approach to risk management, as exemplified by the risk management leaders in this study, is not only demonstrated to enhance performance. It is the key to the compliancy and resiliency that will help banks withstand today's challenges and endure far beyond."

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