By Kaivalya Vishnu, Director – Risk & Treasury Technology, Bank of America Merrill Lynch
Kaivalya, can you please tell the Risk Insights readers a little bit about yourself and your current professional focus?
I am a technologist with 25 years of industry experience in building and managing technology applications and platforms for a variety of industries and enterprises in UK, US and India. I have been focusing on building data, reporting & analytics platforms for risk, treasury and liquidity functions for the last 8 years. The focus is on helping firms comply with deepening regulations such as Mifid2, Fed5G, Basel 3/CRD IV as well as optimizing management reporting and metrices. There has been recent thrust on digital transformation in building knowledge assets leveraging technology advances.
At the Risk EMEA 2018, you will be discussing Digital Transformation of Risk & Treasury functions using Knowledge Management frameworks- Why is this a key talking point in the industry right now?
Business landscape for financial institutions is changing rapidly as new technologies, business models and evolving regulations start to get deployed into the business value chain. Driven largely by deepening regulation and market disruptions during the last decade, most organizations have undoubtedly seen massive IT spending on data and reporting infrastructure. However, traditional focus remains largely on building technology infrastructure for data extraction, consolidation, management (completeness and accuracy), governance and supporting any regulatory or management reporting/analytics requirements. Knowledge management, or in other words content harnessing, that transforms data into digital information assets still remains manual and relies heavily on subjective interpretations, offline insights and decision making. As a result, many control functions are still judgmental, inconsistent and rely significantly on human arbitration.
With the rapid advancements in advanced technologies such as artificial intelligence, machine learning and robotic process automation, time is now ripe for putting in place a next generation of a digital information strategy that transforms treasury’s ability to take a giant leap in its value proposition, gain competitive advantage, and create value-generating, fungible knowledge assets while still meeting on its traditional mandate to optimize financial assets and liabilities, drive cash flow improvements, manage financial risk and meet regulatory compliance.
What are the key considerations in digital transformations?
The key considerations are outlines in my WISE framework which is about value creation beyond day to day regular processes. A holistic architecture principles that integrates technology quite deeper into stakeholder work flows and helps them generate digital knowledge assets. Knowledge hidden into people’s minds needs to be converted into digital fungible assets.
How can firms effectively invest to improve practices?
By focusing on people-process-technology integration in true sense.
Finally, what risk and regulatory challenges do you foresee in the future? And have you got any advice for your peers on how to best handle them?
Regulations will further deepen and will require firms to integrate their cross LOB requirements and data structures.