Cross-factor challenges

Banks realise the importance of measuring and managing risk on an enterprise-wide basis, but aggregating data across various business lines and obtaining consistent information remains difficult. How are banks responding to the challenge?

Risk managers might look back on the current period and see it as a turning point – the moment when risk management went back to basics. The reliance on elaborate models and the assumption rigorously applied mathematics translates to absolute certainty have been widely called into question. Instead, regulators have demanded a greater focus on qualitative measures such as stress testing, with enhanced monitoring of liquidity risk and counterparty credit risk. With those banks that suffered the