Skip to main content Accessibility help
×
Hostname: page-component-848d4c4894-v5vhk Total loading time: 0 Render date: 2024-06-16T17:24:32.919Z Has data issue: false hasContentIssue false
This chapter is part of a book that is no longer available to purchase from Cambridge Core

PART I - RISK MANAGEMENT CONTEXT FOR FINANCIAL DATA

Margarita S. Brose
Affiliation:
Barnard College
Mark D. Flood
Affiliation:
Indiana University
Dilip Krishna
Affiliation:
Deloitte & Touche, LLP
Get access

Summary

The events of 2007–2009 should have dispelled any doubts about the importance of data and information for the management of risks in the financial system. The litany of information problems is by now painfully familiar: banks too big and too inter-connected to fail, structured securitizations too complex to evaluate, shadow banking, inaccurate third-party credit ratings, mis-specified value-at-risk models and six-standard-deviation surprises, robo-signing of legal documents, and on and on.

The consequences of bad information can be enormous. Yet the underlying management issues here would be important even in the absence of a crisis. Many of these challenges are not a one-time fluke, but a basic characteristic of the Information Age. As data proliferate in financial markets and elsewhere, the need to manage those data becomes more urgent. Overall, data volumes are expanding at an exponential rate. Those organizations that successfully tame and harness this data flow will wield a powerful tool. Organizations that fail at this risk being over-whelmed – drowning in data and overmatched by better informed competitors.

The opening section of the Handbook of Financial Data and Risk Information provides a big picture view of the institutional and organizational context within which financial data and risk management occurs. Much of this activity occurs at the level of the individual firm, and a vast body of technical expertise, legal and regulatory constraints, and institutional practice have accumulated to guide it.

Type
Chapter
Information
Handbook of Financial Data and Risk Information I
Principles and Context
, pp. 3 - 7
Publisher: Cambridge University Press
Print publication year: 2014

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×