Since the financial crisis, risk management in banks has grown in importance, and therefore so has the need for digitization. Regulations have called for stronger risk management of business processes. The first direct requirements for capital requirements and liquidity management were introduced in Basel III, but this has continued since.
Digitization of Risk Management in Banks
The regulator has effectively been enabled to form a better overall image across institutional boundaries.
This is the origin of stress tests and other comparative tests carried out by the regulator. The comparisons also resulted in efforts to harmonize and standardize different risk types.
Examples of this type of harmonization are the Minimum Capital Requirements for Market Risk (MCRMR), BCBS352, known a…
