IBM RegTech Innovations

Answering unanticipated questions in financial risk: Moving from reporting to true analysis

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It seems like just yesterday when complying with regulation was the end goal in itself. The bulk of these efforts were focused on simply churning out reports to keep regulators happy. There is a new and more complex reality now. Whether financial institutions and their risk systems are ready or not, those days of simple reporting are behind us.

To help financial institutions face up to these, and other challenges, Watson Financial Services has introduced RegTalk. This series of live and interactive webinars convenes experts and risk professionals together to discuss key issues in RegTech, and to help banks understand the innovations available to help address challenges and unleash their potential.

As risk managers today are under enormous pressure from multiple directions and financial institutions are being flooded with an embarrassment of complex data that is testing the capabilities of their risk systems, maintaining the status quo is becoming difficult. In addition to the data challenge, regulations are becoming more complex. Financial institutions face demands from a multitude of regulations including FRTB, SACCR, LCR, NSFR, IFRS9/17, stress testing, and local regulations.

At the same time, management is asking more difficult questions as they are under increasing stakeholder pressure to improve margins and grow the business. So, the people responsible for solving these problems are being pushed to deliver more when their existing technologies are struggling to keep up.

To manage through the overwhelming and interconnected challenges discussed above, financial institutions (FIs)need better insights that can drive decision making at the tactical and strategic management levels so they can execute efficiently and leverage this new-found wealth of data to generate strategic advantage. For institutions able to see beyond the short-term goal of compliance, there is an opportunity to leverage necessary investments for compliance to generate strategic opportunities – opportunities that drive new revenue, improve optimization of capital, better manage risk, and reduce costs. This requires innovative technology that enables real-time decision-making, accurate, up-to-the-minute reporting, and the ability to test scenarios and iteratively ask new questions after getting a set of answers.

After partnering with them for several years, IBM acquired Armanta in 2018 and has incorporated their technology into a series of products to solve these challenges. Available to customers through the IBM Algo Workspace Analyzer product, it helps to address both ends of the issue identified above, “technology that can work with larger data sets, to answer more complex problems faster.” This solution gives clients the ability to ask unanticipated questions and move from reporting to true analysis. It allows FIs to augment their analytic capability across their business without forcing them to completely reengineer their infrastructure.


Introducing the IBM RegTalk webinar series episode 3

For the third episode of this series, titled “Answering unanticipated questions in financial risk: Move from reporting to true analysis,” taking place on March 21st at 11AM ET/ 3PM GMT, we’ll focus on this technology and how financial institutions can bring this change to their organizations.

Join Alistair Rennie, General Manager of IBM Watson Financial Services, Peter Chirlian, CEO of Armanta, an IBM Company, and William Mirrer, NA Technical Team Leader, IBM Watson Financial Services for an interactive discussion on:

  • The challenges associated with deploying technology solutions to address risk and regulatory requirements
  • How firms can overcome data and analytic silos and ask ‘what if’ questions at the enterprise level
  • The unique way IBM is addressing helping clients meet these challenges and others today

Register here for the IBM RegTalk Episode 3.

Content Director, Watson Financial Services

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