Improvement of credit risk management systems can currently be significantly determined, among others, by the implementation of new information technologies for banking.
Are the processes of improving banking risk management systems currently determined by the implementation of new information technologies, i.e. by implementing banking data processing technologies in Big Data database systems, Business Intelligence based analytics, implementation of Blockchain technology and artificial intelligence.
Do you think that the processes of improving banking risk management systems are currently determined by the implementation of new information technologies for banking?
Please reply
Best wishes
Prof. Prokopowicz,
I have done some thinking and quantitative research in these matters using Econophysics from my RHMHM School Collaboration. But I have kept hidden the real motivational part of this research field. That is that Banking Sector in India is one of the most intensively union networked industry. Hence, while we continue to do research on inventing better technologies physical, economic and financial to increase efficiency levels of bank management by controlling risk of banking operations, the union networks develop a new interaction picture which may go down as far as nonoptimal utilisation of cybernetic systems due to various disruptive countertechnologies like say "go slow" work rules. Hence, banks risk exposure and engineering and management of solutions require appropriate strategies and estimation of results for efficient implementation. There are fresh rounds of moral hazard, adverse selection, disruptive technologiy problems which come with the new technologies and need to be solved. Hence, the spacetime analysis of internetworked banking as we have started to do (Mallick and others(2010, 2006), Mallick, Raychaudhury, Mallick (2018)) of Mathematical Econophysics (may we state humbly our discovery) which naturally provides Genetic Codes and Genetic Algorithmic solutions in spacetime of internet and the associated game theoretic and general equilibrium solutions with endogenous and exogenous statespaces (Mallick (1993, 1998, 2009)) over time in Economic Sciences and String Matching Systems (Mallick et. al.) ought to be given serious consideration with globalised networks (AGGNNNetworks (Mallick et. al.)).
S.K.Mallick (CA)
for S.K.Mallick, S.Raychaudhury, S.Mallick
for The RHMHM School,
USA, Japan, India
I believe there would be more value gained if very specific Banking risks were discussed and within a specific context. Blockchain and Artificial Intelligence opportunities and threats differ when discussed in the context of say Pakistan vs New Zealand. Blockchain is believed to revolutionize the concept of trust, which is the cornerstone of Banking. Technology is disrupting current ways of thinking and acting. Thus as leaders perhaps we can also ask the question, "What opportunities are there in Blockchain technology, and how can we capitalize on it?"
Certainly there is a need to follow the stream of new technologies and seek for the opportunities to manage the broad requirements of the risk areas.
However, the exploitation of new technologies open the game incentives for new risks (from artificial intelligence (AI), machine learning etc.) and require additional attention, procedures and controls toward new cyber attack techniques.
How are business processes and resources involved?
Are the processes of improving banking risk management systems are currently determined by the implementation of new information technologies for banking?
If yes, I hope with care.
I encourage you to continue the discussion on the issues of pro-social banking for sustainable development. To this end, I formulated the following thesis as inspiration for discussion: The first step to creating sustainable development banking operating in accordance with the principles of business ethics and corporate social responsibility was to prevent banks from setting interest rates at high usury. The next pro-social step is the gradual reduction of information asymmetry in relation to clients and improvement of credit risk management processes, IT systems, etc. and the sponsorship of pro-social and cultural ventures, while the step towards green finance banking will be the participation of banks in financing large, pro-ecological business ventures. In these few words, I tried to include in the shortest possible formula conclusions from the research on key determinants of the development of modern banking in the context of various economic, social, technological processes, etc.
What do you think about it?
I invite you to discussion.
Thank you very much for participating in the discussion.
Greetings,
Dariusz Prokopowicz
Dear Sir Soumitra Kumar Mallick, Milan B. Vemić
, Zaid Omer, Emmanuel V Murray, Stephanie Ursulet, Thank you very much for participating in this discussion and providing inspiring and informative responses. Thank you very much for your inspiring, interesting and highly substantive answer. Your responses confirm that the processes of improving banking risk management systems are currently determined by the implementation of new information technologies for banking?Best wishes,
Have a nice day,
Dariusz Prokopowicz
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