As we look back over the past twelve months, there have been significant changes in the financial services industry. Recent experience has highlighted the nature of the challenges inherent within financial institutions’ risk management systems.
The race to build more structured and complex products is screeching to a halt while financial institutions across the globe are now going back to basics with products that allow them to reduce their overall risk.
As investors’ needs are changing, there are also differences in the way risk management is approached and enforced across Asia as opposed to Europe. Due to a larger number of smaller, more regional banks in the Asia-Pac region, emerging markets such as Vietnam,
are still finding it hard to get hold of the right data that allows them to combine all the relevant components for an appropriate and efficient risk analysis.
While European markets are now focusing on optimising their risk management strategies, their Asian counterparts need to ensure that the data used enables them to effectively reduce their credit risk. Many of the Asian markets, such as Thailand, are developing
into global forces; making the need for the right risk management tools increasingly important for this region.