Financial firms struggle with the legacy of their separate siloed risk systems. A recent survey funded by BI vendor SAS shows that 81% of the respondents experiences the technical hurdle of data inconsistencies. The difficulties of separate risk systems and inflexible sources were pinpointed by more half of them.
Improve future stress testing
The survey questioned 27 global financial institutions about the principles of BCBS 239: Basel Committee’s Principles for Effective Risk Data Aggregation and Risk Reporting that aims to increase transparency and reduce operational risks. Banks that adhere to these principles can improve future stress testing and anticipate future problems.
Curious how widely banks have embraced these principles
SAS offers a range of solutions that help to meet the BCBS 239 principles from risk data quality and management, data lineage, risk aggregation, visualization and reporting and stress testing and was therefore curious as to how widely banks have already embraced these principles. The majority of firms turned out to be sceptical about their ability to prove origin of data (a requirement in BCBS 239).
Room for improvement
About 67% saw room for improvement and 22% identified the need for significant investment. Respondents were also asked whether they thought compliance to BCBS 239 would deliver ancillary business benefits. Indeed they expect it would allow them a more holistic view of risks, 22% stated they expected improved stress testing capabilities and 30% thinks they would get a more holistic view of firm-wide risks.
SAS examined in our Business Intelligence Tools Survey
Additional and more up-to-date information on the offering of SAS is available in our 100% vendor neutral Business Intelligence Tools Survey 2019.