For the Capital Markets, Every Risk Playbook Needs to Implement These 6 Themes

The capital markets have learned a lot about risk management since the 2007-2009 financial crisis. Over the last 16+ years, new systems, new technologies, and new risk mitigation strategies have been adopted to identify and defend against external threats and internal vulnerabilities.

But it has also been learned that risk will never disappear and regardless of what form any next crisis takes, we can be sure there will be one. Do you feel confident that the risk management systems and processes your organization has in place today will be sufficient to ensure resiliency?

This white paper outlines 6 risk management themes that we think should be a part of any risk playbook and which can serve financial institutions well in preparation for the uncertain future that lies ahead. The themes include:

1. Develop and conduct adequate stress testing methods
2. Put in place a capable risk data function
3. Utilize real-time risk analytics
4. Maintain robust counterparty credit risk systems
5. Make use of emerging technologies to improve the risk function
6. Have a truly dedicated chief risk officer