IT Architecture for Market Risk Controlling

Financial institutions are confronted with a multitude of new regulatory requirements in the market risk environment. As a consequence, the demands on data storage are also increasing. The granularity of the data, its quantity and quality as well as its cross-disciplinary consistency are affected. At the same time, banks are facing the challenge of having to make their IT systems more cost-efficient – a consequence of increasing competitive pressure and the low interest rate environment.

However, the current development is also a catalyst for the reorganisation of the IT architecture in market risk. New technologies offer great potential, even beyond the legal and internal requirements, such as the data lake for centralised trade data or the machine learning system for analysing historical simulations.

Further possibilities for action can also be derived from the outsourcing of individual services or entire service units, as well as from the consolidation of functions within a bank – always with the goal in mind of sustainably positioning the institution.

The new regulatory requirements will permanently change the IT architecture in market risk controlling. They require a sound understanding of the multitude of requirements and the existing technological possibilities. KPMG can help you with this. In the area of regulatory requirements, we support you with excellent specialist and technological knowledge as well as industry expertise.

KPMG fully covers the interface between business and IT through interdisciplinary teams. Based on our long-standing audit and transformation experience, we have a deep and extensive understanding of the heterogeneity of market risk IT systems. Our expertise enables the benchmarking of individual systems and the development of innovative IT structures.

We offer you comprehensive end-to-end service, from the analysis of requirements to the successful monitoring of the implementation:

• Benchmarking and analysis of front office, market data and risk systems, as well as architectures
• Target vision development
• Initialisation and transformation planning
• Professional and technical conception based on state-of-the-art technologies
• Test design and implementation
• Support during audits by supervisory authorities

Contact us for a no-obligation discussion, a workshop or to carry out an analysis for your institution or division. Our experts are happy to assist you.