In a time of great economic uncertainty, fueled largely by the pandemic, geopolitical threats, escalating inflation, and a supply-chain crisis, banks are undergoing major credit risk transformations (CRTs) to improve their credit risk modeling and decisioning capabilities. But this is proving a difficult task in a volatile market rife with technological upheaval and up-and-coming digital competitors.
To shed light on the state of CRTs and all of the associated challenges, the SAS Institute and the Global Association of Risk Professionals (GARP) in July 2022 surveyed roughly 300 credit risk executives and practitioners from a globally distributed sample of financial institutions.
The insights gathered by SAS and GARP reveal that banks are facing many obstacles in their CRT quests. Key areas addressed by the survey, and detailed in this report, include:
- The business objectives of CRTs
- The scope of CRTs
- The challenges of CRTs
- What’s next for credit risk managers