Traditionally, financial organisations have responded to compliance, performance and risk requirements as a series of individual and isolated solution areas, rather than as part of an integrated solution architecture.
This is according to Felix Caprez, senior director of Oracle EMEA`s financial services industry business unit. He was speaking at the announcement of Oracle`s integrated platform for risk and performance management for the financial services industry.
He said that banks` core processes around lending and risk management have typically operated in isolation of each other. Due to this, they developed various measurements and deployed different systems to support their operations, added Caprez. Historically, this approach worked sufficiently.
The company`s new offering, Oracle Financial Services Analytical Applications, allows risk and performance to be analysed and managed in a single platform.
"Today, the combination of unprecedented industry turmoil and an economic downturn has forced financial services institutions to re-evaluate their business models," he pointed out.
This involves achieving a more holistic view for management as well as reporting to both regulators and investors, Caprez added.
Managing risk
He said this latest solution will support a completely integrated approach to risk and performance management. "The goal of this new business model is to measure and manage customer relationships, products, and lines of business on a risk-adjusted performance basis."
While risk-adjusted performance management has existed as a concept for some time, Caprez said it is now gaining traction, as banks look to establish processes and practices that better reflect risk-weighted results, and can help them avoid another financial meltdown.
According to Caprez, the platform comes at a time when banks face a constant balancing act. On the one hand, they must comply with increasingly stringent financial regulations, and on the other, they must help guide the enterprise to a profitable future, investing in new opportunities while mitigating risks.
With fragmented data and hundreds of departmental solutions, meeting these challenges can be difficult and costly, noted Caprez.
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