NEWS | For Immediate Release
LONDON, August 3, 2018 – The first Moody’s Analytics Risk and Finance Forum in London focused on the rise of integrated balance sheet management, risk and finance alignment, and the strategic challenges associated with IFRS 9.
Roshni Patel, Director, and Risk and Finance Specialist at Moody’s Analytics, kicked off the event by explaining how banks continue to place greater emphasis on integration across risk and finance. Ms. Patel discussed the governance and infrastructure challenges associated with cross-departmental integration at larger institutions, and zeroed in on the modeling and data challenges that medium and small firms face when adopting a streamlined approach to risk and finance.
“IFRS 9 and the stress testing requirements across Europe are acting as a catalyst for institutions to focus on risk and finance alignment,” said Ms. Patel. “Both regulators and senior managers are looking for efficiencies and better metrics. They want to understand the demands on capital, and trade-offs between capital and liquidity. Across Europe, we are seeing a growing number of firms creating teams to help with risk and finance alignment. These teams are responsible for integrating scenarios, regulatory reports, and communication on all internal and external reports for risk and finance matters.”
Dr. Juan M. Licari, Managing Director, and Economist at Moody’s Analytics, discussed the ongoing challenges with IFRS 9 implementation. Discussion then turned to how financial institutions can bridge the gap between accounting and risk management using macroeconomic scenarios. Forecasting and stress testing of IFRS 9 provisions was highlighted as a future challenge in the industry.
The growing importance of integrated balance sheet management was the main topic highlighted by Nicolas Kunghehian, Director, and Asset Liability Management expert at Moody’s Analytics. “In pursuit of creating efficiencies across the business while optimizing their balance sheets, many banks are looking to integrate the management of liquidity and credit,” said Mr. Kunghehian. “By adopting an integrated approach to balance sheet management, banks can gain a holistic view of risk. This covers enterprise asset and liability management (ALM), funds transfer pricing (FTP), liquidity risk management, and business and regulatory reporting.”
Moody’s Analytics was recently named a category leader among balance sheet management vendors, as evaluated by Chartis Research. Click here to learn more about the Moody’s Analytics RiskConfidence™ ALM system.
Last year, Moody’s Analytics was recognized as a category leader in the Chartis Research report, IFRS 9 Technology Solutions: Market Update 2017, which included 15 leading vendors that offer IFRS 9 solutions. Click here to learn more about the Moody’s Analytics IFRS 9 solution.
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