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Risk Priorities in Capital Markets and SAP Capabilities converging…..

The recent white paper survey, “Key RIsk Management Challenges for 2013/14”  by SUNGARD Capital Markets of risk priorities globally has yielding some interesting insights:

  • US banking institutions identified enterprise-wide stress testing as the top risk management priority
  • Global banking institutions – i.e., those outside the US identified liquidity risk management as the top risk management priority
  • Bankers tended to worry most about challenges such as regulatory pressure, economic uncertainty, and achieving profitable growth
  • Responses of US banking institutions to the question “Has your organization completed an enterprise-wide stress testing program within the past 12 months” varied clearly according to asset size:
    • All surveyed banking institutions $10Bn-$50Bn have either completed a stress test already or currently have plans or funds to do so in the next 12 months.
    • All surveyed banking institutions >$50Bn have completed a stress test.

The top four C-Suite risk management priorities were:forest for trees.jpg

  • enterprise-wide stress testing
  • liquidity risk management
  • regulatory capital adequacy
  • and risk appetite

It is certainly gratifying to see that SAP’s industry group has been on point in creating solutions for today’s key issues…..

  1. LRM@HANA, liquidity risk stress testing, analytics and scenario modeling built on HANA for real time stressing is perfectly positioned for the next round of US government mandated liquidity stress testing, commonly referred to as C-LAR.
  2. The combination of SAP Data Services, BPC(Budgeting, Planning and Consolidations), and Disclosure Management are perfectly positioned to facilitate and automate the process known as CCAR or DFAST for bank holding companies and other financial participants.
  3. Lumira Analytics on HANA deliver the real time view of captal adequacy models on any device by aggregating and analyzing data as it flows from end to end improving your ability to anticipate issues rather than react
  4. SAP Strategy Manager can assist in the creation and execution against an enterprise wide risk appetite

We will be discussing these capabilities and industry issues with key participants, including a risk roundtable discussion on Wednesday the 18th of September that will include several industry Chief Risk Officers….. join us-register at the link below and come to the Risk roundtable at 4PM…..

SAP can help you find the trees within the forest…….

Don’t miss the keynotes from SAP CEO Bill McDermott and Timothy Geithner at this year’s SAP Finance Forum in New York. Register at the link:

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