Risk and Finance Integration

| Point of View

A Practical Approach

The lack of integration between risk and finance has limited the effectiveness of decision-making around risk versus return, capital management and regulatory charge optimization. For many banks, the siloed approach to these two functions has resulted in: data discrepancies; data being aggregated and accumulated at different levels; integration occurring at end-of-day processes; difficulties in computing risk adjusted return for a business unit, portfolio or customer; and more.

The paper discusses how the integration of risk and finance can help overcome data reconciliation issues, relate risk and return parameters with ease and improve predictability as well as reduce overall infrastructure costs, provide a robust and scalable platform and enable enhanced control and quality to ultimately provide a greater return on investment through better risk and financial management.