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January 08, 2010
Risk 2010 - Trends to keep in view
Happy 2010 to readers. Many in Risk Mgmt profession welcome 2010 with a sigh of relief, considering the financial markets turmoil and the resulting broader economic impact in 2009. So what can we in the Risk Mgmt profession look forward to in 2010?
As a passionate follower and student of global Risk mgmt practices, I see the following trends based on hands-on projects as well as close observation of how different firms are approaching risk mgmt posrt 2008-2009;
1. Risk Mgmt has become much more people centric. The dependence on quant models will obviously continue but no more blind faith in black box models, without knowing its internals.
2. Focus on organization wide employee buy-in for Risk mgmt practices at all levels i.e. Risk is really everybody's job.
3. Cross company collaboration as a key pillar of how companies manage enterprise wide Risk
4. Percentage of firms taking a more strategic and longer term view of Risk Mgmt practices will rise.
5. Emergence of more IT savy self serve Risk Mgmt power users who will be grow even more adept at sourcing and conducting their own analytics rather than rely on IT deptt. to spoon feed.
6. Liquidity risk and Asset Liability Mgmt back in focus
7. Risk computing via cloud becomes real
8. Closer link between pricing and clearing in Credit derivatives and move towards use of clearing houses for CDS & OTCs.
9. More regulators/supervisors will shift to the heavy handed approach to Risk exposures vis-a-vis the light touch.
10. Goldman Sachs Risk professionals will be in even more high demand!
Posted by spachava at January 8, 2010 04:52 PM
Very good list of signposts on our path to 2010 and possibly beyond. For me, nothing hit home more than, "Risk is really everybody's job".
Other important point is, In the ever-so-connected with suppliers, customers, collaborators, the enterprises need to manage risks across the whole chain.
I was intrigued by the Risk computing and Cloud technology, though. I will be interesting in knowing more about it.
Thanks.
Posted by: Prashant at January 31, 2010 03:25 PM
Good insight. My only disagreement is that Goldman Sach's risk professionals will be in demand. Goldman Sach's needed a bail out. I'd imagine that the risk professionals who will be in demand are those who have demonstrated a track record of success.
Posted by: Paul Kosakowski at March 16, 2010 06:10 PM
