Risk Management Tools Get Boost from Credit Crisis
The Wall Street credit crisis could results in more companies investing in risk management tools and the computing power required to understand complex risks.
Lloyds TSB Group is among companies doing just that. "Because of the turmoil in the market, those what if scenarios are probably more extreme than you would have in a normal market," Ricky Higgins, IT director of products and markets for Lloyds, told InformationWeek, adding that more complicated calculations are testing computer processing limits.
It's not that just every financial services companies needs to employ risk management technology, but they must do it the right way. "Given the levels of technology that we have today, this crisis we're going through is something that was very avoidable," Gregg Berman, the risk management practice head at the hosting service RiskMetrics told the publication. "This was not a natural disaster. The writing was on the wall for quite some time and people ignored it."
