The Future of Risk Management Question Title * 1. Please submit the following details: First name: Last name: Company name: Job Title: Email: Telephone: Question Title * 2. Prior to COVID-19, at what stage was your digitization effort for credit risk management? Not underway Early Advanced Question Title * 3. Prior to COVID-19, what market forces were driving your department to consider digitization of your credit risk management processes? New and tighter regulations on risk management Investor/Counterparty/Customer expectations for new solutions Moves by competitor organizations Increasing pressure on costs/returns from Fintech companies New digital attackers disrupting traditional business models We are not considering digitization Question Title * 4. Has Covid-19 accelerated the rate at which you are looking to digitize your credit risk management processes? Has not influenced our plans at all Has had limited influence on our plans Somewhat accelerated Significantly accelerated Question Title * 5. What challenges has the Covid-19 pandemic triggered for the credit risk environment? Need to better segment borrowers in the same sector or subsector Lack of an automated way to receive data to drive decision-making tools Lack of timely data during periods of market stress Changing investor/counterparty/customer/regulator expectations An increased wave of non-performing exposures stressing resources Need to better differentiate creditworthiness across sectors and subsectors Inability to react quickly to changing market conditions An increased wave of non-performing exposures stressing resources Other, if so please explain Question Title * 6. What new data approaches are you taking/considering to address these challenges? Using data mining and machine-learning techniques to uncover additional insights Adopting new data delivery and ingestion mechanisms for faster access to time-sensitive information Using alternative plus traditional data to help estimate resilience to COVID-19-like crises Accessing broader data specific for SMEs for more timely risk assessments Exploring supply chain and counterparty data to better assess disruptions and implications for recovery Other, if so please explain Question Title * 7. What new analytical approaches are you taking or considering to address these challenges? Assessing third-party analytical tools to upgrade/benchmark internal analytics Programming advanced early-warning systems Updating models to better estimate probabilities of default (PDs), loss given default (LGD), and recoveries Monitoring portfolios in a more granular manner using back-testing exercises and internal ratings Developing more robust sector-specific solutions Adding additional metrics on current credit conditions Adding additional environmental, social, and governance (ESG) performance metrics Developing more automated/dynamic reports for executive decision-making Enhancing compliance and regulatory reporting Offering self-service reports for clients Other, if so please explain Question Title * 8. Where have you made the most progress to date with respect to digitization? Reporting Data Analytics Other, if so please explain Question Title * 9. Where do you face the biggest challenges with respect to digitization? Analytics Reporting Data Other, if so please explain Question Title * 10. Any areas where third-party providers could enhance their credit risk management offerings to help address your challenges? Financial data coverage Data to support ESG analysis Trade flow intelligence Sentiment analysis and behavioral metrics Advanced analytics for early-warning systems Improved credit risk workflow tools Predictive analytics or insights Support for automated reporting More integration with other Fintech providers Other, if so please explain Question Title * 11. How are you approaching digitization? Using a combination of internal and external resources Using a third-party firm to develop data, analytics, and reporting Developing data, analytics, and reporting internally Other, if so please explain Question Title * 12. If using/considering a third-party for support for digitization, where do you see this type of firm helping the most? Reporting Analytics Data All Other, if so please explain Question Title * 13. How would you describe the benefits of digitization for your organization? Better positioned for regulatory requirements Better early-warning signals Improved efficiencies Better risk control/management to protect organizational profitability Help support risk-based pricing Other, if so please explain Done
