Banking is a risky business, and banking organizations have identified many risk factors in the financial services environment including credit, market, liquidity, and operational risk. Risk management is becoming more critical and more difficult in the banking industry, in part due to weakness in major industrial sectors like automotive and construction, and in part due to recent financial turmoil causing volatile market conditions. Naturally, all banking institutions have some risk management policies, processes, and systems in place, but in many cases they simply aren't effective because they're not based on adequate risk measurement, monitoring, and management information systems. Banks around the globe are recognizing that it's time to invest in an effective risk management system—time to invest in IBM business intelligence solutions.
Cognos Solutions Support Risk Management Initiatives
With 10 out of 10 of North America's top banks as clients, IBM, understands risk management from a bank's viewpoint. With this background, IBM experts are able to support risk management officers in financial institutions globally to establish the vision and goals for their risk management initiative, develop plans and strategies, and define clear metrics and milestones as measures of success. The IBM system's integration of business intelligence and planning tools means that an IBM Cognos software solution can cover the whole range of the risk management project from consolidating customer data, through the planning of strategies, processes, and performance measures, to generating robust risk analytics, and reporting on customized metrics.
Control Risk Factors with a Solution from IBM
Controlling risk factors isn't a simple process, but it's made easier with IBM technology. Integrating data from disparate databases with IBM tools provides the fundamental source of comprehensive customer data—the basis for all risk management efforts. With the data under control, IBM systems and expertise can be used to define key performance and risk indicators, and the analytics to use for measuring and assessing the risk. Cognos reports and dashboards communicate the monitoring software results to your financial analysts, with automatic alerts and notifications of critical trigger points for management decisions and actions. These alerts can indicate specific risk escalation levels, such as loss or business impact thresholds, so that emerging risk issues are addressed as soon as they become significant. As well as providing a robust, effective framework for risk management, IBM has a rich, intuitive, Web-based interface that encourages user adoption.
Learn more about IBM solutions for risk management in banking here.
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