Achieving Enterprise Risk Management: A Case Study of United Overseas Bank (Analyst Insight)

Achieving Enterprise Risk Management: A Case Study of United Overseas Bank (Analyst Insight)

Introduction

This report will look at the challenges faced, and the strategies adopted in integrating risk disciplines across a fast growing organization across multiple geographies.

Scope

*This brief looks at the challenges to integrating risk management across the APAC region.

*This brief will examine success factors and the roadmap for further integration across the enterprise.

Highlights

The key findings of the report draw out the challenges faced to implementing an enterprise risk management framework. Important lessons in terms of structure of the solution, and the phased nature of the project with the benefits realized at each stage.

Reasons to Purchase

*Gain insight into the actual challenges faced by banks in moving to an enterprise risk management framework.

*Understand the benefits of enterprise risk management and the business benefits that can be realized

Overview 1
Catalyst 1
Summary 1
Table of Contents
Table of figures 3
Analysis 4
United Overseas Bank background 4
The response to the financial crisis will require integrated risk management and reporting 5
Departmental silos remain the key challenge to integrating risk reporting and analytics streams 6
The regulatory response will require increased transparency of critical processes and enhanced reporting 7
Increasing capital requirements will demand more sophisticated economic capital management 7
UOB sought standardization in core systems to provide a basis for a risk platform solution 8
A risk platform solution was chosen to enable UOB to create its own customized utilities 9
The project has brought UOB transparency benefits and a framework for further integration 11
An integrated view of risk allows the management of risk concentrations and external shocks 11
Resulting risk-adjusted return capabilities enhanced transparency in pricing and profitability 11
Integration of risk paves the way for the incorporation of finance data 12
UOB will continue to evolve its operational risk capability 13
Conclusion 13
Vendor recommendations 14
The diversity of the region will demand modular functionality or the expertise to evolve existing solutions 14
Vendors must demonstrate rapid business benefits combined with a roadmap for future development 15
Vendors should target a wider range of stakeholders as risk management integrates with operations and finance 15
APPENDIX 16
Definitions 16
Methodology 16
Further reading 16
Ask the analyst 16
Datamonitor consulting 17
Disclaimer 17
List of Figures
Figure 1: UOB is a strong regional player in APAC 5
Figure 2: The interdependencies of risk 6
Figure 3: Economic capital efficiency will increase in importance with increasing capital requirements 8
Figure 4: UOB established the framework for integrating further risk disciplines 10