The Next Frontier in Risk Management: How to Achieve Digitalization | Straterix
18466
post-template-default,single,single-post,postid-18466,single-format-standard,bridge-core-1.0.7,fully-background,ajax_fade,page_not_loaded,,footer_responsive_adv,qode-child-theme-ver-1.0.0,qode-theme-ver-23.9,qode-theme-bridge,qode_header_in_grid,cookies-not-set,wpb-js-composer js-comp-ver-6.0.5,vc_responsive

The Next Frontier in Risk Management: How to Achieve Digitalization

02 May The Next Frontier in Risk Management: How to Achieve Digitalization

Posted at 14:04h in News by

What do you do if you want to digitalize your risk management processes? For a start, firms need to take a top-down, big-picture approach that makes use of explainable machine learning. Then there are three core steps: readying your formulaic dependencies – e.g., calculation of NII, RWA, ECL, LCR/NSFR and capital ratios from underlying scenario variables; preparing for scenarios you’ve seen before (whether good or stressful); and learning how to deal with dependencies, shocks, and consequences you’ve never seen before. For more, check out Alla Gil’s latest column in GARP, which you can read here.