How risk management could address key challenges for wealth managers in Asia
Frederic Bertholon-Lampiris, director of financial services industry practice at Deloitte Singapore feels that the traditional wealth management business model is at risk and has to be reshuffled. December 12, 2012 | Frederic Bertholon-LampirisAccess to local and global financial markets, strong economic fundamentals, political stability and quality of life are among the key success factors for Singapore to dethrone Switzerland as the world’s leading wealth management hub. Recent feedback from the industry suggests an average 20% growth per annum of private banks’ assets under management in Singapore, in line with the rising wealth in Asia, compared to an AUM growth per annum forecast in the mid-single digit area for Switzerland between 2012 and 2015. However, despite these positive forecasts, the challenges that a private banking business has to face today are nothing like those in the past. The combination of global economic and political instability, higher market volatility and uncertainty, increasing regulatory pressure and rapid strategic evolutions engenders a higher complexity and numerous obstacles on the road to engage the 2020 client. In this disruptive environment, new risks emerge in relation with strategy, regulation and compliance, clients’ investments, reputation and Information Technology (IT). The risk management playing field has to be updated and completed accordingly in order to address such new challenges. Strategy-at-Risk The traditional wealth management business model – mainly driven by closed architecture and discretionary management – is at risk and has to be reshuffled to address new markets and new clients. The private banking market in Asia is also experiencing big strategic swings, with ever-increasing competition and higher pressure on margins, making it even more difficult to find its own path towards growth. In that context, strategic decisions consist more than ever in making critical choices for the future of the organisation and entail various and emerging risks on the way to profitability. The key challenge from a risk management perspective is to identify and monitor those risks in relation to the defined strategy an... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Basel III, Capital & Strategic Issues, Regulation, Retail Banking, Risk and Regulation, Singapore, Wealth Managementbasel III,Capital & Strategic Issues,riskregulation,retail,Risk and Regulation,Singapore,Wealth Management, Basel III,Capital & Strategic Issues,Regulation,Retail Banking,Risk and Regulation,Singapore,Wealth Management, Keywords:AUM, Private Banking, Switzerland, MAS, FATCA, KYC, Dodd Frank, AML, VaR AUM, Private Banking, Switzerland, MAS, FATCA, KYC, Dodd Frank, AML, VaR
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