March 18, 2008 13:30 ET

Focus on The Evolution of Enterprise Risk Management in Financial Markets (Market Focus)

LONDON, UNITED KINGDOM--(Marketwire - March 18, 2008) - announces that a new market research report related to the financial services industry is available in its catalogue.

The Evolution of Enterprise Risk Management in Financial Markets (Market Focus)

A successful enterprise risk management (ERM) strategy can help organizations meet the challenges posed by emerging technologies by providing a framework for managers to consider how risk exposures are changing, determine the amount of risk they are willing to accept and ensure they have the appropriate risk mitigants in place to limit risk to targeted levels.

Discussion of the impact of the sub prime crisis on risk management practices and solutions. Looks at the rate of technological change that is being driven by regulatory compliance measures.

The sub prime crisis has caused a fresh look to be taken at credit risk policies and practises. Organisations are revaluating the impact of a series of regulatory changes and endeavouring to leverage investment to enable a truly enterprise wide approach to risk management. The discipline of operational risk is beginning to mature.

Gain insights into current risk management trends and practices. Assisting vendors in their go to market strategy.






Introduction 2

Credit risk failures can precipitate liquidity risk, so model assumptions need to be dynamic 3

Sub-prime crisis background 3

Credit risk challenges: leverage and modeling 4

Credit risk challenges: ratings agencies 4

Credit risk challenges: aggregation and integration 5

Credit risk challenges: knock-on effects 5

Implications for credit risk assessment and pricing 5

Changes to ratings agency policy and practice 6

Modeling 6

Over-reliance on modeling and silo structures prevented the successful aggregation of portfolio risk profiles 6

Modeling shortfalls 6

Liquidity risk 7

While credit and market risk have driven investment for some time, operational risk is still very much evolving 7

ORM process 7

Communication is key 8

The growing convergence between IT and risk is being driven by regulatory change 9

Compliance as opportunity 9

MiFID and RegNMS update 9

Conclusion 11


Definitions 12

Extended methodology 12

Further reading 12

Ask the analyst 12

List of Figures

Figure 1: Enterprise risk management map 3

Figure 2: The levels of ORM 8

Figure 3: Investment drivers 10

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The Evolution of Enterprise Risk Management in Financial Markets (Market Focus)

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