|[July 08, 2014]
Lepus, SAS Research: Data Dilemmas Plague Bank Compliance
CARY, N.C. --(Business Wire)--
Increasing regulatory pressure requires banks to improve risk
aggregation and reporting. Yet a majority struggle with data
inconsistencies, says a recent
Lepus Research and SAS survey. This technical hurdle was pinpointed
by 81 percent of banks surveyed. More than half also face difficulties
from separate risk systems and inflexible sources.
Lepus surveyed 27 global financial institutions about the Basel
Committee's Principles for Effective Risk Data Aggregation and Risk
Reporting. Also known as BCBS
239, the principles aim to increase transparency and reduce
operational risks. Adherence to these principles allows banks to improve
stress testing and anticipate future problems.
"The survey clearly shows that firms are struggling with the legacy of
their separate, siloed risk systems," said Geoff Kates, CEO of Lepus.
"That makes it extremely difficult to combine high-quality data for
regulatory reporting, risk and capital management, and stress testing."
An overwhelming majority of firms seemed skeptical of their ability to
prove data origin - a requirement of BCBS 239. Some 67 percent saw room
for improvement and 22 percent identified a need for significant
The institutions were also asked if they expected BCBS 239 compliance
initiatives to deliver ancillary business benefit. Many anticipated
achieving a more holistic organizational view of risks, with 22 percent
citing improved stress testing capabilities and 30 percent needing a
more holistic view of firm-wide risks.
"In the regulatory-compliance future, stress testing will be an ongoing
process of analyzing unpredictable scenarios instead of an annual
exercise devoid of surprise," said David M. Wallace, SAS (News - Alert) Global
Financial Services Marketing Manager. "Banks that fully implement BCBS
239 principles as best practices will be able to analyze surprise
scenarios on demand for regulators. In addition, they'll be more
effective and efficient in capital planning."
SAS provides a range
of solutions to help firms meet the BCBS 239 principles from risk
data quality and management, data lineage, risk aggregation,
visualization and reporting, and stress testing.
To compare your firm's readiness for BCBS 239 to the Lepus survey
results, read the report paper Industry
Challenges: Implementing Effective Risk Data Solutions.
Lepus was founded in 1997 to provide research, consulting and marketing
services to the finance industry. Concentrating mainly on investment
banking, Lepus also offers services in the retail, insurance, asset
management, corporate and hedge fund sectors. Lepus' success is founded
on its ability to provide its clients with a service which is expressly
geared to their individual requirements.
SAS is the leader in business
analytics software and services, and the largest independent vendor
in the business intelligence market. Through innovative solutions, SAS
helps customers at more than 70,000 sites improve performance and
deliver value by making better decisions faster. Since 1976 SAS has been
giving customers around the world THE POWER TO KNOW®. SAS
and all other SAS Institute Inc. product or service names are registered
trademarks or trademarks of SAS Institute Inc. in the USA and other
countries. ® indicates USA registration. Other brand and product names
are trademarks of their respective companies. Copyright © 2014 SAS
Institute Inc. All rights reserved.
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