NEW YORK, Nov. 4, 2010 -- Reportlinker.com announces that a new market research report is available in its catalogue: Using Technology to Improve Credit Risk Oversight http://www.reportlinker.com/p0186160/Using-Technology-to-Improve-Credit-Risk-Oversight.html

Introduction

While governments and regulatory bodies are trying to revive their economies and are pressuring banks to increase their lending, the industry's ability to manage credit risk remains weak. This situation is boosting a re-evaluation of credit risk management processes and underlying technologies, in order to minimize the exposure to current and future credit losses.

Scope

*The report examines the growing exposure to credit losses that drive the adoption of credit risk oversight strategies and technologies.

*It provides insight into the integration of credit risk with other risks and the blending of business processes and technologies.

*The recommendations provide the necessary intelligence for enterprises to formulate their technology strategy and for vendors to align their offerings

Highlights

Bankers should focus on stronger governance in order to establish efficient measurement systems, and strengthen the credit culture within an organization. Although in many cases banks already have credit risk management systems in place, they were, for the most part, bypassed or ignored with a false confidence in securitization.

The focus on oversight demands that banks provide a more comprehensive view of their credit risk exposure. One of the main needs is to record and monitor risks, so that a bank is always completely aware of its overall credit risk exposure. Therefore, banking organizations need to implement much more advanced systems to manage risks and capital.

Reasons to Purchase

*Gain insight into the challenges faced by retail banks seeking to improve their credit risk oversight practice.

*Gauge how market conditions are shaping the development trajectory of the credit risk management discipline.

Key messages

Implementation of strong credit risk governance is a necessity to avoid financial failures

Business intelligence and analytics will be required for stronger credit risk oversight

Banks should focus on a framework approach when evaluating credit risk technology

MARKET CONTEXT: The impact of the credit crisis

Banks need to understand the relationship between credit and other types of risks

The boom-bust drama drives the failure of existing credit risk mitigation strategies

Securitization does not remove the need for conscientious credit risk management

Risks need to be managed as interconnected areas to prevent financial disasters

Strong credit risk governance is a necessity

Access to precise and reliable information enables accurate decision making and monitoring

business Focus: the road toward maturity

Underperforming organizations must revisit their credit risk processes 8 The ability to analyze risks on aggregate positions across transactional data and credit portfolios is key

Business intelligence and analytics will be required for stronger credit risk governance

The approach toward credit risk needs to mature through the implementation of enterprise-wide risk strategies

Credit risk must be treated as a component of a wider risk strategy

The reliance on quantitative models must be balanced with a qualitative approach

Managers should focus heavily on a more predictive approach to risk measurement

Credit risk should create added value for banks

Technology FOCUS: integration is key

Automation is the efficiency king

Banks need to automate their risk management lifecycle

A comprehensive and automated risk platform is the driver behind efficiency

Computing power is a necessity for successful credit risk implementation

Grid computing is an emerging trend

Server platforms must meet the requirements of processing-hungry credit risk applications

It is a necessity to create a proper data foundation

Data quality is key

RECOMMENDATIONS

Recommendations for enterprises

Banks need to focus on the stronger governance of their credit risk processes

The 'ownership' of the credit risk technology needs to be shifted from IT to risk officers

Sound data management and data quality procedures need to be implemented 27 Recommendations for vendors

Solution providers need to focus on long-term strategy and short-term execution