Blog Posts Process Analysis

New Compliance Asks: Is Your Risk Data Management Sound?

Blog: Enterprise Decision Management Blog


Have you got a handle on IFRS 9, CECL and BCBS 239? If not, and it all just sounds like regulatory alphabet soup, it’s time to familiarize yourself with these critical acronyms. All three requirements highlight the need for financial institutions to ensure the quality of their risk data. Aggregation and effective use of this data are becoming key to meeting new compliance challenges, not to mention an opportunity to derive additional business value.

So what specifically are all these acronyms? Here’s a quick overview:

These new standards, coupled with other compliance requirements such as stress testing, reporting and monitoring, all place an emphasis on effectively collecting and managing risk data from disparate sources in order to meet growing regulatory scrutiny. The resulting challenges were discussed at length during several regulatory compliance sessions in late April at FICO World 2016, our premier client conference.

As a senior leader at a large multinational financial institution asserted in his presentation, compliance should not be the only goal in developing a strong risk data aggregation and reporting system. Significant business value can also be derived in the form of: better data quality, reduced costs in data management, enhanced operational agility as model complexity is reduced and better-architected applications for analytics.

Of course, FICO subject matter experts were quick to assure FICO World attendees that we have comprehensive solutions that will enable them to address these challenges, whether it is loss forecasting models, impairment calculation tools, stress testing capabilities, or risk data aggregation and reporting.

The big takeaway, however, remains that compliance is becoming more and more dependent on financial institutions’ ability to coalesce and optimize its risk data. If done successfully, this can lead to more than just a compliance win but also a lift to your overall business.

The post New Compliance Asks: Is Your Risk Data Management Sound? appeared first on FICO.

Leave a Comment

Get the BPI Web Feed

Using the HTML code below, you can display this Business Process Incubator page content with the current filter and sorting inside your web site for FREE.

Copy/Paste this code in your website html code:

<iframe src="" frameborder="0" scrolling="auto" width="100%" height="700">

Customizing your BPI Web Feed

You can click on the Get the BPI Web Feed link on any of our page to create the best possible feed for your site. Here are a few tips to customize your BPI Web Feed.

Customizing the Content Filter
On any page, you can add filter criteria using the MORE FILTERS interface:

Customizing the Content Filter

Customizing the Content Sorting
Clicking on the sorting options will also change the way your BPI Web Feed will be ordered on your site:

Get the BPI Web Feed

Some integration examples