In today’s economy, it is difficult to fund initiatives that may offer a theoretical return on investment. This is a challenge often faced by risk managers as they try to put in place structures to guard against losses. However, enterprise risk management is not about playing it safe. It is about playing it smart by minimizing, monitoring and controlling the likelihood and/or fallout of unfavorable events caused by unpredictable financial markets, legal liabilities, project failures and accidents. In this Capco report, entitled “Enterprise Friction: The Mandate for Risk Management,” we explore the role of risk management in operating a successful business in today’s economy. We believe that the key to any successful enterprise risk management strategy is to treat as the application of well-balanced friction that helps organizations avoid unnecessary losses while responding effectively to the threats and vulnerabilities to which organizations are exposed.

At Capco, we believe that companies should rethink risk management, viewing it not as a necessary evil but as a strategic function in their organizations. This report provides an overview of the challenges and tools risk managers can use to win over executives who claim that risk management might dampen earnings potential or stall innovation. Learn how senior executives can integrate risk management into their business processes, while building a culture of risk awareness and action.

ENTERPRISE FRICTION

The mandate for risk management

By Sandeep Vishnu, Capco Partner

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In the wake of the credit crisis of 2008-2009 and the emergence of a more dynamic global environment, financial institutions must redesign and deploy their go-to-market channels. In the Capco report entitled “Rethinking Channel And Product Optimization In The Global Financial Services” we explore the current state of disparate, redundant and often disconnected processes that currently underpin relationships between customers and institutions and conclude that this situation is no longer sustainable for several reasons: customers are looking for a more integrated and unified banking experience, new niche competitors are appearing and current margins are difficult to maintain.

At Capco, we believe a failure to aggressively rethink channel and product optimization strategies will have lasting consequences. In this report, we provide an overview of the challenges and offer insights into how executives can develop an enterprise wide channel strategy. Learn how senior executives can develop a clear blueprint, or business architecture, and get buy-in from board-level executives in order to ensure sustained focus, accountability – and ultimately success.

RETHINKING CHANNEL AND PRODUCT OPTIMIZATION
IN THE GLOBAL FINANCIAL SERVICES INDUSTRY

The case for a customer-centric enterprise business architecture

By Nick Jackson, Capco Partner

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It has only been a year since the credit crisis affected the international financial system and brought about the most daunting economic period since the Great Depression. While many questions are being explored, one of the biggest issues that should be addressed is the unsustainable discrepancy in the regulatory and settlement risk-mitigation posture that continues to exist between the major buy-side institutions and the broker-dealer community. This report explores the case for ensuring that parties that use the same clearing systems should be held to the same standards to mitigate risk.

While it is clearly a controversial issue, at Capco, we believe it must be explored in order to reach a long-term sense of confidence in the financial services markets. This initiative will require participation from all parties, including the regulatory community. Read our latest thought piece, “Critical systemic settlement risk imperatives in the global financial markets” to learn what still needs to be done in the area and how your company can get involved.

CRITICAL SYSTEMIC SETTLEMENT RISK IMPERATIVES
IN THE GLOBAL FINANCIAL MARKETS

Achieving regulatory parity between buy-side and broker-trader in financial markets

By Joe Anastasio, Capco Partner

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