Managing risks and fraud smartly

AS regional and international banks emerge from the 2008 global financial crisis, many institutions are continuing a strong focus on risk management to ensure they are complying with more stringent regulations and are lending and investing cash wisely.

Risk concerns continue to be top-of-mind for bankers. A combination of lower asset yields and loosening loan terms for mid-market and large businesses amid an uptick in commercial and industrial lending is increasing risks for banks. A more stringent compliance environment and heightened awareness of sophisticated financial crime has led CFOs and their colleagues in the C-suite to seek and deploy more effective strategies to prevent and detect such crimes. A major tool in their armoury is risk analytics software.

Risk analysis involves the use of data analytics to obtain insights into various risks in financial, operational and business processes, as well as to warn, detect and monitor fraud. Not only does analytics measure, quantify, and predict risk, it provides clearer visibility into the challenges associated with managing the many types of risk in such key areas as operations, regulatory compliance, supply chain, finance, e-commerce, and credit, so leaders can rely less on intuition and create a consistent methodology steeped in data-driven insights.