In our recent discussions on XVA trends we’ve explored the concepts of Trade EVA and best practices for visualizing trade profitability, in addition to bringing XVA pricing and risk into the front-office.
But, what about implementation strategy? Does your organization have a successful XVA implementation plan or organizational process yet in place? If lingering thoughts on implementation strategy are keeping you up at night, we have some tips to share.
Based on our research and experience, our approach advocates first viewing organizational changes from a process engineering perspective—and then, from a technology systems and quantitative model perspective.
Overall, today’s financial institutions will need to assess the many interdependencies that exist within the organization. Understanding and agreement on strategic priorities from the top-down is an essential component for any successful implementation, and should occur at the outset of the project.
Best Practices: An Iterative Approach for Process Re-engineering