Software tackles bank risk

A software package to help banks comply with a new code of conduct on risk management was launched last week.

A software package to help banks comply with a new code of conduct on risk management was launched last week.

Business intelligence specialist SAS said the software is the first to comply with the stringent requirements of the New Basel Accord. This code of conduct aims to make international banks' assessments of their loans and investments more sensitive to risk while reflecting technological developments in global markets.

Banks that can show an advanced level of risk management should be able to reduce capital costs.

However, industry analysts have warned that the accord, due to come into force in 2005, looks set to become a more expensive compliance burden than Y2K.

A survey last year found that UK banks were lagging behind their European counterparts in preparations for the accord. Only 63% of UK banks surveyed by KPMG had started projects to address credit risk issues for compliance with the code.

Banks cited cost and data issues as the biggest obstacles to implementing the proposals. The New Basel Accord will update the existing accord, which has been the benchmark since 1988.

SAS said its product, Risk Management for Banking, will help banks to gain an overview of their exposure across the business, aggregating credit, market and operational risks.

Read more on IT risk management

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close