Thomas Obitz, Principal Advisor, KPMG LLP, UK
The risk management function of banks traditionally was organized into the three pillars of prudential capital risks market, credit and (a bit of) operational risk. Each of them used different controls, models, information, systems and skills. Liquidity was a given, almost at a risk-free rate. And collateral management was a support function. Not a single one of these assumptions holds true anymore they were washed away by the global financial crisis. Liquidity is scarce and expensive. Credit and market risk cannot be looked at in segregation not since credit derivatives made it possible to convert one into the other, and clearly not since IFRS9 and Basel III called for adjusting asset prices for counterparty credit risk. Libor rigging, PPI and swap mis-selling have demonstrated the perils of conduct risk. With EMIR, collateral suddenly became a scarce and crucial resource. Welcome to the new reality.
The presentation shows how banks have started transforming the way they are managing risk, consolidating their exposures, and positioning themselves in the new market place. In this process, Enterprise Architecture plays a central role.
-- How to use architecture to transform a key function of a bank
-- Address some key changes in the banking industry
Thomas Obitz is a Principal Advisor with KPMG LLP in London. Building on more than 20 years of experience in the IT industry, he acts primarily as a lead architect of major initiatives, as an enterprise architect, and a business architect. He has more than 13 years of experience in the Financial Services industry, with a strong focus on Investment Banking and Capital Markets.
Besides his client work, Thomas is involved with the development of the TOGAF framework since 2004. He is part of the Business Architecture Working Group and served as chair of the TOGAF strategy working group and of the TOGAF – BIAN collaboration initiative to ease EA adoption in the Banking industry. Thomas is frequent speaker at international conferences.