Three Under Appreciated Mandates for Enterprise Risk Management in the Next Decade

| Point of View

How can the lessons of the current mortgage crisis lead risk managers to change?

World financial markets have been rocked recently by a credit crisis with origins in the US home mortgage market. These markets have weathered similar credit crises in the past: the large corporate bankruptcies in 2001 and 2002 and the Commercial Real Estate (CRE) and Savings & Loan losses in the early 1990s are good examples. Banks can learn from each crisis and improve upon their risk management skills. Capgemini believes the next generation of risk management practices will focus on a more holistic approach in the use of risk analytics and information. This will produce a true Enterprise RiskManagement capability which can meet the new risk management imperatives that will emerge from the present global crisis.