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6/30/15 - Better Risk Data: Regulatory Mandate and Strategic Opportunity

At the heart of the sustained effort to improve risk management at financial institutions is better information — and the ability to assess and manage it quickly. But recent reports from the Financial Stability Oversight Council and the Basel Committee on Banking Supervision suggest that the industry still has much work to do in aggregating and reporting risk data for boards and executive management, regulators, market participants, and investors.

Many banks are attempting to meet specific regulatory requirements by building a series of one-off processes and systems — an approach that can lead to a patchwork of partial capabilities that could leave the bank farther away from having the authoritative, consistent information it needs. Please click "Read More" below to read a Sightlines InFocus by Ray Strecker, Yoko Otani, and Stacy Coleman that explains why banks and other financial institutions should aim for a comprehensive approach to managing risk information that not only satisfies regulatory requirements, but also supports use of the information to make better-informed strategic decisions.