Production Bank
In the production bank, many institutions will have to take measures to control costs. Cost-cutting potentials need to be exploited in order to maintain competitiveness. The enhanced optimisation or standardisation of processes may be a path towards this aim. If appropriate, comprehensive restructuring programmes may be required.
In addition, many banks will have to redesign their business processes in the medium term. The crisis shows that the interplay of front office, back office, risk management and IT did not always work perfectly. Thus, many financial institutions did not recognise the decisive risk drivers nor examined the effects of business decisions from all the different perspectives.
Consistent data collections form the indispensible basis for improving those processes. Additional analysis dimensions need to be considered. One of these is, for example, the comprehensive representation of all relevant risk positions, including group-owned conduits and SPVs, within the framework of extended reporting functionalities.