Agile Risk Assessment Depends on Ad Hoc Analysis

Zane said that what’s been driving the development of new research has been a combination of economics, regulation, and businesses looking to get ahead. The industry is now at the point of same-day need for analysis. More data, nevertheless the timeline is shrinking. Companies want to get to same-minute, as close as possible afterwards trading, activity — requiring massively parallel computing.

Minder Cheng, board member of Investment Research Group, notes that in the wake of the events of 2008, TARP had to be introduced because no one was going to support another $750 billion bailout. If there had been a chance to somehow look at the exposure across all the banks and see what could happen with the market, alarms might have gone off alerting them that billions were at risk.

The trading even takes place

Chippas noted all these terabytes are generated previously the trading even takes place. With today’s innovation, businesses have to make a choice between speed and risk analysis. Everyone has to recognize the limitations and associated constraints that result.

Cheng stated that innovation is being driven both by regulators as so then as banks wanting to maximize risk-adjusted returns.

Day that goes

Chippas added that there isn’t a day that goes by that they aren’t trying to optimize: processes, research, etc. It’s an ongoing trajectory of trying to provide a broader base of analytics, without more infrastructure if possible, stating, “It never ends. If we can do it faster, cheaper, broader, better than anyone else, that’s the goal.”