Waters – Real-time Counterparty Risk Management Is Elusive, Yet Possible

By | March 3, 2010

Real-time risk isn’t really real-time – on demand is probably more accurate.  Regardless, the credit crisis has put a big focus on risk management and culture and process, not technology, is the real speed bump in the way of progress.  My comments:

“Counterparty risk is not a technology problem any more,” says McPartland. “The technology is more than sophisticated enough to do those calculations quickly, to gather data. It is more of a process issue. We are still in a world where a lot of financial firms are working in product silos with legacy technology. If all of those things could be erased-and that is no easy task-and a firm could start from scratch, there is no question that technology is out there and most of it can be bought off the shelf.”

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