If your organization already has a system for managing risks, either in-house built & maintained or a 3rd party tool, chances are that it is too cumbersome to use and is not scalable. In such a case, the only option left for you is to Replace Legacy Risk System with a new one, one you would actually use and will scale along with your constantly evolving processes. We expect the following could be your requirements:

Need to Replace Legacy Risk System
  1. The Risk Management tool is too “geeky”, needs advanced users and can only be operated by people well-versed with coding / algorithms / calculations. This is most likely resulting in a gap between the real users – the business users (traders, CFO, CEO, Business heads) and actual users (Risk Analysts).
  2. Your organization is spending a lot of time and money on people & infrastructure to just operate that tool. There is an increasing awareness of improving efficiency here while at the same time enhancing the utility of the tool for a bigger set of users.
  3. Well-qualified and capable people are spending most of their time in working ON the system rather than working on analyzing the reports and alerts coming FROM the system. You are concerned that this will eventually create churn in that team and would like to avoid that.
  4. Whether the system is being maintained in-house or by another vendor, the costs of maintenance are likely quite high and even that is unable to incorporate newer requirements from users, or those coming due to evolving business processes. You’d ideally like a system that meets all or most of these new requirements and moreover, is scalable for future changes as well.

 

We can address these concerns in the following manner:

Benefits of replacing legacy risk system
  1. If required, as part of our Risk Consulting Practice, we can conduct a GAP analysis between the new and future (as anticipated) requirements and the current system to arrive at whether it needs to be replaced or whether work-arounds can be found for those.
  2. We can implement RiskEdge, our flagship Risk Management VaR Software Solution, which will significantly reduce your concerns on scalability and flexibility of the system. Since it’ll start with incorporating all / most of your new requirements, it will need lesser changes in the near future thereby reducing the overall costs for you. Also, it’ll enable your team to focus more on analyzing current and anticipated scenarios and suggest action points for those, rather than focusing on getting reports out of the existing system.
  3. Conduct a review of existing Risk Processes to benchmark them with risk management best practices and provide a gap analysis at the end of the review, which can then be taken up by your existing team in deciding the future course of requirements for the system.