Wednesday, September 16, 2009
Sibos 2009, day three. Is banking bonkers? There are many attendees here that subscribe to the fact that many of the systems, processes and regulations that have been implemented over the years have overcomplicated the basic business of banking, and in doing so, masked where many of the inherent risks actually are.
Today we have witnessed a number of discussions around the area of risk, but often the difference between operational, trading and credit risk have not been described in enough detail. So it was refreshing to hear Andrew Long of HSBC commenting that “We won't stop taking risks, it's what we're paid to do. If we don't take risk, we won't stay in business.”
Clearly he was not advocating a cavalier approach to systems management, but making a clear statement of intent regarding what the role of banking should be, in the knowledge that the bank has the appropriate risk, trade and credit management systems. That's probably why exhibitors such as Murex, Mysis and SunGard have the busiest stands.
The tropical storm conditions in Hong Kong have certainly improved the appeal of the forums and exhibition, and a quick survey of our clients BT, Omgeo, Ace and IT2 has shown that although overall numbers of attendees is down, the seniority of those attending is certainly much better than in recent years.
Sibos is once again proving to be an invaluable forum for all concerned and yes, if staying out until 2am, followed by hours discussing regulation in memory processing and multi-platform banking apps is the order of the day, then banking is definitely bonkers. But maybe that’s why we love it so much!
Tudor Morgan
tudor.morgan@greentarget.net