Basel II and Risk Management Survey of Asian Banks: Has a Risk Culture Taken Root?

Table of Contents

• Table of Contents
• Financial Insights Opinion
• In This Report
  • Methodology
• Situation Overview
  • Pillar 1: Quantitative Minimum Capital Requirements
    • Credit Risk
    • Figure: Current and Planned Regulatory Capital Frameworks for Credit Risk
    • Figure: The Maturity Phase of Current Credit Risk Management Programs
    • Figure: Credit Risk Management-Related Technologies/ Methodologies Implemented
    • Figure: Investment Priority/Focus of Organizations' Credit Risk Capabilities
    • Figure: Implementation Challenges for Credit Risk
      • Data Collection and Centralization
      • Figure: Number of Years of Historical Data Currently Available for Basel II
      • Figure: Expected Change in Capital Position as a Result of Basel II
    • Operational Risk
    • Figure: Operational Risk Categories
    • Figure: A Typical Operational Risk Management Structure
    • Figure: Current and Planned Regulatory Capital Frameworks for Operational Risk
    • Figure: Maturity of Current Operational Risk Management Programs
    • Figure: Operational Risk Management-Related Technologies/ Methodologies Implemented
    • Figure: Investment Priority/Focus of Operational Risk Capabilities
    • Figure: Implementation Challenges for Operational Risk
    • Market Risk
    • Figure: Current and Planned Regulatory Capital Frameworks for Market Risk
  • Beyond Pillar 1
    • Pillar 2: Qualitative Supervisory Review Process
    • Pillar 3: Enhancement of Market Discipline
  • Investment Estimates
  • Figure: Estimated Basel II Spend for the Entire Implementation Period
  • Table: Estimated Basel II Spend
  • Figure: Estimated Systems Investment Share of Spend
  • Figure: Systems Procurement Method
  • Vendor Assessment
  • Table: Vendor Solutions Currently Utilized or Being Considered for Credit Risk
  • Table: Vendor Solutions Currently Utilized or Being Considered for Operational Risk
  • Table: Vendor Solutions Currently Utilized or Being Considered for Market Risk
  • Figure: Selection Criteria for Vendor Solutions
• Future Outlook
  • Risk as a Driver of Value
  • Figure: Major Benefits Expected from Basel II Adoption
  • Figure: Areas of Risk Representing Potential Threat to Earnings
  • Figure: Drivers of Change for Risk Management Priorities over the Next 12 Months
  • Figure: Business Processes Inclusive of Participation from the Group Risk Management Committee
  • Enterprise Risk Management
  • Figure: Adoption of ERM Programs
  • Figure: Respondents' ERM Priorities
• Essential Guidance
  • Actions for Financial Institutions
  • Actions for Vendors
• Learn More
  • Related Research
  • Appendix
    • Respondent Demographics
    • Figure: Respondents' Participation by Country
    • Figure: Respondents' Asset Size in FY05/FY06
    • Figure: Presence of a Chief Risk Officer
    • Figure: Direct Reporting Line of the CRO
  • Synopsis