Many are closely watching the changing landscape of collateral management, especially due to implications within Dodd-Frank, EMIR and Basel III. It is these three important reforms that added the E (for Enterprise) to the Collateral Management landscape. The good news is that robust managed services and tools will rapidly come to market to help both buy-side and sell-side organization and the remaining host of stakeholders. The bad news is that they will not be ready, especially in an integrated manner, in time for planned regulatory implementation timelines.
It is this very dynamic that allows Business Process Management (BPM) to help organizations with this challenge. BPM, by itself, is not a complete solution; however, many of its characteristics align with the needs of this type business problem. The underlying processes are filled with both manual and automated activities. These need to be orchestrated as they move thorough the stakeholder groups. They are dynamic, and will change with regulations, trading partners and other value chain partners such as SEFs and Clearinghouses. And, BPM’s abilities to monitor, and even simulate, have great appeal due to changes that will come.
But first a few cautions. BPM enabled business solutions should start off pretty narrowly focused nearly a proof-of-concept. This is not the tool for full-blown waterfall- oriented development program. BPM is just a tool. It is powerful, but not a silver bullet.
A few well-crafted sessions with the right participation should yield high-level conceptual process maps with prioritization of automation targets, followed by a plan to get started. Experience shows that time-boxing to delivery of tangible business results is a mantra to BPM success.