How are business leaders navigating this uncertainty?
In Mitratech’s experience, one striking development is
a significant increase in investment in business and economic modeling by large corporates, banks, asset managers, and insurers. Senior management seeks a better “crystalball” that offers insight and options in navigating this extraordinary landscape of change, risk, and opportunity.
The febrile economic environment is driving the need for constantly changing and updated models that capture new dynamics. Investment in modeling systems, software, and staff has increased markedly this year, so management can better simulate scenarios to identify risks, opportunities and outcomes. They want to make better-informed decisions.
These models – and the decisions they inform – are only as good as the data, policies, and controls that support them. An experienced provider (like Mitratech) is capable of objectively helping organizations to better manage their model risk, and reduce the chance of issues in the modeling process that can compromise the final results. For some institutions, this is about addressing compliance issues like SR 11 7 (in the US), or SS3/18 (in the UK). For all organizations, it is about visibility, audibility, and the assurance that their ‘crystal ball’ is working as designed.