Subprime provides ERM boost

LONDON - Silo structures and over-reliance on models are recognised causes of last year's subprime crisis. Yet there has been no significant rise in the uptake of enterprise-wide risk management (ERM) strategies by financial services firms, despite many calls for integrating market, credit and op risk more closely. This is set to change, however, according to new research from data analyst Datamonitor.

The Evolution of Enterprise Risk Management

predicts that the subprime crisis represents a coming-of-age for ERM, and gives bold predictions for an increase in the use of op risk technology to link risk disciplines.

A global re-evaluation of risk strategies after the subprime crisis will produce shift in regulatory-driven technology spending on op risk management systems as firms strive to achieve