CHAPTER 6Enablers for Robust Risk Management in Capital Markets: Process, Technology, and Data

Swati Sawjiany


As discussed in earlier chapters, capital markets activities by their very nature require careful and appropriate risk management. The global financial crisis exposed the need for improved and more stringent risk management practices at financial services firms; firms have responded by investing in upgrades to their risk management processes, technology, and data environments.

The pace of regulations and complexity remains daunting. As a result, the cost of compliance is higher than at any point in recent history, operational and technology risks are plentiful, and the need for more timely and accurate analytics is pervasive.

With this backdrop, risk processes, technology, and data are playing and will continue to play a critical role in the stability and efficiency of capital markets business models. This chapter provides an overview of the risk management and measurement processes, technology, and data capabilities required at capital markets firms. Following this introductory section are the following topics:

  • The typical capital markets risk processes executed at large financial institutions
  • The technology capabilities and systems architecture required to support capital markets risk activities
  • Key data sets used for capital markets risk management and core principles associated with effective management of risk data


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