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Nov 25, 2008

Sapient Presents “THREE Cs” To Help Financial Services Firms Tackle Enterprise-Wide, Cross Asset Risk Management

Sapient (NASDAQ:SAPE) today announced the release of a new white paper entitled “Enterprise-Wide, Cross-Asset Risk Management Takes Charge: Convergence, Consolidation and Connectivity Pave the Way,” in which Sapient, working with research and publishing company A-Team Group, provides insight into the challenges of enterprise risk management for large and diverse organizations.  The Three Cs spelled out in the paper—convergence, consolidation and connectivity—help guide trading and investment firms on how to move to the proactive risk model that will be required in the future.

“Financial services firms have systems in place that lack the transparency and agility needed to understand, report and optimize the risks in their portfolios on a firm-wide basis,” said Chip Register, senior vice president and managing director of Sapient’s global Trading and Risk Management (TRM) Practice.  “A critical first step in defining and implementing an enterprise risk management infrastructure is a bottom-up systematic review of risk processes, policies and systems—from C-level, to trading, to operations.”

The unprecedented events impacting global financial markets in recent months have underscored the need for firms to review their current practices and develop an enterprise vision for risk management as a business imperative.  Adding to the complexity, firms today are struggling to keep their risk management systems relevant to the rapid innovation occurring in their front office businesses amid increasing global market pressures.  At the same time, financial services firms must cope with additional regulatory requirements looming on the horizon.

“There’s no question firms are taking a hard look at risk management practices across the board.  They are looking to refine risk measures, improve supporting data and ensure consistent practices as top priorities.  The bottom line is that firms are trying to develop roadmaps to achieve risk management goals,” said Angela Wilbraham, chief executive officer, A-Team Group.

In this white paper, Sapient outlines the “Three Cs” of enterprise risk management—convergence, consolidation and connectivity—and describes how by following this approach, organizations will be able to better manage risk at the enterprise level:

  • Convergence – The recent economic crisis is forcing governments worldwide to converge on the shared goal of stabilizing global financial markets.  This environment is setting the stage for agreement across entities on a direction and on defining specific treaties and policies.  Organizations should leverage opportunities for convergence, such as industry standards, best practices and utilities, to mitigate risk at both an industry and a firm level.
  • Consolidation – Consolidation occurs within the convergence process through bounded centralization—e.g., merger activity at a financial services level.  Consolidation at the enterprise and corporate level aims to bring efficiency gains and to facilitate globalization.  Organizations should use consolidation to enforce and simplify risk management by creating a unified environment, common compliance mechanisms and flexible reporting capabilities.
  • Connectivity – Connectivity defines how consolidation happens at policy, process and technology levels.  It is the enabling technology that makes convergence and consolidation possible.  Organizations should build upon their firm’s infrastructure foundation using a cost-effective approach that increases flexibility, performance and scalability as risk management functionalities.

The white paper – the first in a series jointly written by Sapient and A-Team Group – presents both firms’ knowledge of the complexity facing industry participants, reviews applicable regulations and uses Sapient’s experience working with global businesses to help companies arrive at an executable roadmap.  To receive a copy of the white paper, please contact Gail Scibelli at (305) 581-0095 or visit www.sapient.com

Sapient’s Trading and Risk Management (TRM) Practice  brings more than 15 years of applying business, technology and process experience to fully service trading and risk enterprises.  Leveraging deep industry knowledge, global capabilities and a relentless drive toward innovation, Sapient partners with its TRM clients to improve their businesses, transform their operations, expand their client base and maximize profitability.  The company’s TRM clients include global investment banks, tier one hedge funds and buy-side firms, major oil and energy merchant companies and government entities.

About A-Team Group
Founded in 2001, A-Team Group is a publishing, research and events group that provides the global community of IT and data professionals in financial markets with the business intelligence they need to excel in their roles.  The firm is widely known for its focused series of publications, research and events across mission-critical functions including high-performance trading infrastructure, low-latency market data and connectivity, enterprise data management, market structure, risk and regulation and more.

A-Team Group’s publishing division publishes a range of online and in print news services including Reference Data Review, Market Data Insight, A-Team IQ magazine, MiFID Monitor (soon to be expanded into Risk & Regulation IT), AsiaMarketsIT.com, Low-Latency.com, and FinTech-Infrastructure.com.

A-Team Group’s research division collates data, performs analysis and publishes in-depth reports,  such as OTC Valuations - Pricing Assets in the Post Credit Crunch World; Buy-side Firms Take a Hard Look at Data Practices: Derivatives Push the Data Management Envelope, and more.

A-Team Group’s events division partners with companies to produce highly-targeted seminars on specific business challenges, attracting senior-level industry practitioners, such as its recent series of Algorithmic Trading seminars with Dow Jones across Europe and North America.

For more information call Pete Harris at (917) 267-7595 or please visit  www.a-teamgroup.com.

About Sapient

Sapient, a global services firm, operates two groups—Sapient Interactive and Sapient Consulting—that help clients compete, evolve and grow in an increasingly complex marketplace.  Sapient Interactive provides brand and marketing strategy, award-winning creative work, web design and development and emerging media expertise.  Sapient Consulting provides business and IT strategy, process and systems design, package implementation and custom development, as well as outsourcing services such as testing, maintenance and support.

Sapient’s passion for client success—evidenced by its ability to foster collaboration, drive innovation and solve challenging problems—is the subject of case studies on leadership and organizational behavior used by MBA students at both Harvard and Yale.  Leading clients, including BP, Essent Energie, Hilton International, Janus, Sony Electronics and Verizon, rely on the company’s unique approach to drive growth and market momentum.  Headquartered in Boston, Sapient operates across North America, Europe and India.  For more information, please visit  www.sapient.com .

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Sapient is a registered service mark of Sapient Corporation.

 


 

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