RiskTech100TM is an annual report by Chartis Research which is recognized globally as the most comprehensive and prestigious study of the top technology companies active in the risk management market. In 2010, the fifth edition of this report was published.
Moving towards a re-shaped financial sector, financial institutions face major challenges. New regulations, such as the new bank capital and liquidity requirements agreed by the Basel Committee on Banking Supervision (BCBS), will strengthen the resilience of financial firms, but, above all, they will require banks to take a significant step-up in their entire technology infrastructure. As Chartis states, âenterprise-wide risk management is a multi-disciplinary activity. Rapid measurement and reporting of risk requires the integration of data and systems to be backed up by a well-thought out organizational structure that enables senior management, group business heads, IT, risk, audit and operations staff to work towards common objectives. Technology may be at the heart of a firmâs risk management strategy helping to link risk management silosâ.
The accumulation of changes to capital and liquidity, increased compliance requirements around reporting, monitoring, documenting, data capture and modeling is already creating significant new pressures for banks. Chartis, therefore, particularly highlights credit risk management, operational risk & GRC, Liquidity Risk & ALM, market risk and real-time intelligence as some of the key drivers for risk technology expenditure in the following years.
The complete IT infrastructure is put up for particular scrutiny at those firms combining several siloed systems for risk, accounting, as well as reporting purposes. Within all financial institutions â across all tiers, from retail to investment and full service banks -, the move towards improved data quality, better applications and the swift interpretation of data by management as well as its integration with reporting systems is crucial to continuously monitor potential risks, and to face this substantially increasing supervisory scrutiny.
Finance Resource Planning (FRP), a concept developed by FinArch, manifests itself in the solution Financial Studio. Financial Studio provides integrated solutions for IAS/IFRS, General Ledger, Sub-ledger, Trading Ledger, Liquidity Risk, ALM, Basel II Basel III, E-Cap, regulatory reporting as either discreet components or as a totally integrated solution. Financial Studio has gained, and continues to gain, rapid and world-wide recognition as the definitive future platform for integrated risk and finance for financial institutions. FinArchâs constantly expanding client base to date includes 7 out of the top 10 worldâs largest banks by asset size.
âNew regulations and greater focus on risk-based performance management are leading to further convergence of the risk and finance functions within banksâ comments Peyman Mestchian, managing Partner at Chartis Research, âdata management and a consistent technology platform are key success factors for achieving risk and finance integration. FinArchâs combination of technology and subject matter expertise has resulted in continued success in this space with high levels of client satisfaction.â
Dirk De Beule, CEO at FinArch, states: "We are delighted that the innovation and functionality of our unique integrated reporting, risk and finance offering has again been recognized by Chartis. This being the second year in a row that FinArch has been placed first in this category is truly an accomplishment and testament to our vision and our value for the financial services industry.â De Beule continues: âNew regulations also demand an integration of risk and finance, such as new Liquidity Risk regulations, IFRS 9 and Basel III. Financial Studio is perfectly positioned to meet these requirements from its unique position in the market, with some of the largest and most well known banks in the world already adopting Financial Studio for these purposes.â