“Our Techos can build one of those!”

Creating your own solution for Basel II means finding a team of skilled resources who can design, develop and deploy a BIS and Home Regulator compliant solution…and that’s the easy part! Unfortunately, after all that, you will also need to keep a team of resources at your beck and call for the life of the software; a team capable of coping with the unavoidable design issues that were introduced in your original project, day to day defects, and future needs. Getting a home-grown solution across the line on your target date with minimum compliance may be a feat in itself, but internally your many business units will continue to insist on change as they evolve to keep pace with the market, and externally, your home regulator and even BIS will impose change. As of January 2007 many Home Regulators had not even released discussion papers, let alone confirmed National Discretions, on many of the most complex aspects of the Accord. If you are faced with the task of attempting to re-assemble your project teams after the best resources have ‘moved-on’, and your bank must wear the risks of extending a production environment which ‘may not have been designed to accommodate new requirements’, the initial benefits of taking Basel II ‘in-house’ will quickly erode and your bank will remain exposed to these risks. Your alternatives at this stage will be to wait for your Basel III budget in a decade’s time or change jockeys half way through the race…and your next jockey may be excruciatingly expensive when they sense the extent of your predicament.

But…there may just be a solution on the horizon which was architected specifically to accommodate future change and where the employees actually own the company, so we can guarantee that the skills you need will be highly polished and on tap into the far distant future… Why not talk to us at RegCap?