“Complexity reduction” is one of 6 Key Areas for Banking Industry


Ernst & Young recently released “CFO Report: Bank Capital Management in Uncertain Times.” The report covers, as stated, capital management strategies, but it also delves into the areas of risk management getting the most attention at global banks. Since the financial crisis, banks recognize that the quantitative risk models many had relied upon are no longer adequate. The survey found that CFOs, chief risk officers and the organizations that they are a part of are coming together to focus on six key areas of risk management:

Reassessment of business strategy
Analysis and implementation of capital optimization opportunities
Monitoring and revision of capital adequacy goals
Reduction of the complexity of business operations and rationalization of legal entity structure
Improvements in reporting
Improvements in data quality and systems
  1. Reassessment of business strategy
  2. Analysis and implementation of capital optimization opportunities
  3. Monitoring and revision of capital adequacy goals
  4. Reduction of the complexity of business operations and rationalization of legal entity structure
  5. Improvements in reporting
  6. Improvements in data quality and systems

One Response to “Complexity reduction” is one of 6 Key Areas for Banking Industry

  1. The key points of this report have inspired me to finalise my “Retail Banking: Blue Ocean strategy for SME and mid-Corporate customers”!

    Not normally the kind of thing that gets me (or anyone!) too excited but I reckon I can make it, practically, “self-funded”!!! All I need are a couple of close allies in Banking consultancy and IT areas.

    Mind you finding a bank worthy of something that could change the landscape won’t be easy. Unless Co-op, a “green” or “ethical” bank or one of the new entrants might be interested.

    We will see.

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