Risk analytics is increasingly important for banks as they cope with a complex regulatory and competitive environment. Important technologies and calculation engines are now available that are critically important to the future of banks and the entire industry. At the same time, it is possible to develop an over-reliance on analytics, so a balance needs to be found.
Developing more comprehensive and integrated capabilities is increasingly important. Integrated stress-testing, for example, is an important means by which the science of risk management can be turned into more of an art, such that it can be communicated and appreciated by a wider audience. An effective stress-testing framework encompasses a wider spectrum of macro-economic, social, political and environmental considerations and forecasts and so can help banks avoid the tunnel vision that can prevent them from making good decisions and taking timely action.
Companies are investing in risk analytics and intend to increase those investments, yet the potential return is often stifled by inconsistent or incomplete data. This prevents organizations from generating the insights needed to support a more predictive approach to risk management. To read more: http://www.baselinemag.com/analytics-big-data/banking-on-big-data-and-analytics.html