The dramatic fashion in which Bear Stearns and others have gone down in flames brings to the fore issues like counterparty risk management that had previously been undercounted, or not scored at all. The current market realities make implementing a new risk management platform in a hurry highly unlikely, but some banks are finding that their existing risk management platforms can be adapted to track new, or newly important, areas of risk with great efficiency.
Kansas City-based UMB Financial Corp. was in just this position regarding counterparty risk, but executives were relieved to find that the Archer Technologies risk management platform they settled on five years ago could adapt to the new requirement.
This article first appeared in Bank Technology News. Read full article at American Banker (paid subscription required).