How FRTB Shifts Risk Approaches

Misys's Marcus Cree lays out risk data models that firms must use in response to the new trading risk assessment rules

Marcus Cree, risk specialist, Misys

The Fundamental Review of the Trading Book (FRTB), or more importantly the implementation of its requirements, is forcing banks to rethink their technical infrastructure and even their overarching business models. It is not a stretch to think of FRTB as one the most fundamentally impactful rules for banking IT ever, because banks will have to carefully create systems that optimize the use of capital to be proactive about risk for their business.

The starting point for the transformation is the c