Integrated credit risk management – are you ready?

Consolidating data across fragmented systems is crucial for integrated credit risk management – but it is not the whole story. In the first of four columns on the subject, David Rowe argues that organisational readiness is a more amorphous but equally important requirement

Geographic and product-based ‘silos’ – the divisions in an organisation within which there are local stand-alone systems and information – are typical of most financial institutions. They present a major obstacle to integrated credit risk management. Overcoming the resulting fragmentation of information is the most daunting technical challenge to effective portfolio management. Even prior to this, however, it is necessary to ensure that an organisation is prepared for the behavioural changes