The single most important thing that needs to be addressed is the realization of how much capital is being used at a given time. Most people don’t realize how much capital they’re using because of their lack of transparency, and when they finally realize it, it’s too late. To come out of this, we’re asking people to watch very closely how much capital they are spending and to cut any unnecessary costs. This can be done by acknowledging the need for better data management and risk capabilities. BearingPoint has addressed this with a seven point analytical strategy that can assist clients with understanding what changes they need to make. In the podcast, you will hear important points, such as how to manage data, estimate risk, change current business processes and how to implement an integrated risk and performance framework.

Clearly this crisis has exposed a number of weaknesses in risk management across the sector. Most organizations still have basic issues around risk and transparency. This podcast addresses key areas that are lacking in the risk management sector; such as understanding your risks, what risks are making you money and how effectively your trading machine is working? There are many changes that need to be made across the entire financial services sector, and the key points that are addressed in the podcast can help you itemize an action plan to take the appropriate measures to ensure future success.

Tags: BearingPoint, Brian Hart, credit crisis

Through the seven steps that have been outlined, you will identify ways to not only examine your daily business, but how to change it. The challenge with financial institutions today is that information is produced in silos. With all this information being spread around, it is hard for a manager to know what is going on and when there is a problem that needs to be dealt with. Our proven methodology focuses on the importance of putting information in the hands of the deal maker and how to change the incentive structure. Above everything else, an organization must learn how to implement a comprehensive integrated performance and risk management framework. This framework is vital for the success of one’s organization.

In a period of sharply reduced balance sheet allocations, certain businesses have reached a critical point where information and tools are required if they are to compete effectively. Organizations can better prepare themselves to achieve advantageous returns by formulating a comprehensive risk and performance strategy. A strategy similar to that outlined herein can help management to dramatically reduce the capital your organization consumes while conversely demonstrating superior returns.

Tags: BearingPoint, Brian Hart, risk management

The key elements that have been identified in the midst of the recent turmoil are the importance of a single, integrated trade performance and risk management platform. Most companies have invested considerably in separate financial, risk management and trading systems. The challenge, however, is the need to pull information from a variety of sources into a single, cohesive reporting framework that blends risk and performance insights. This framework can then provide a view of the business that is consistent with how traders and management think of it.

In addition to implementing an integrated performance, it is essential to eliminate unnecessary costs in risk management by eliminating significant administrative activity, such as spending 20% of company time troubleshooting. By freeing up these resources, management can focus on their business, as opposed to managing the process of creating information.

Crises such as this are nothing new to the financial world. By understanding the importance of an integrated platform and the other key capabilities that are essential to success, a financial institution can ensure they are better prepared for any obstacles they face in the future.

Tags: BearingPoint, Trading Performace and Risk Management, Brian Hart, risk management