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

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.”

Full article here (scroll down the page)

Leave a Reply

Your email address will not be published.