One of the greatest challenges for enterprise risk management is the aggregation of underline business and market data. Business data includes transactional and risk positions captured in different front and back office systems. Market data includes prices, volatility, and correlations. In addition to data aggregation, standard and processes must be established to improve the quality of data that is fed into the risk systems.
As far as risk Technology goes, there is no single vendor software package that provide the total solution for enterprise risk management. Organisations still have to either build, buy, and customise outsourced the required functionality. Despite the data and system challenges companies should not wait for a perfect System Solution to become available for establishing an enterprise risk management program. Rather, they should make the best use of what is a variable and at the same time apply rapid prototyping techniques to drive the system development process.
Dictionary company should consider tapping into the power of the internet or intranet in the design of an enterprise risk Technology platform.