This timely three-part podcast series offers technology, global markets and banking best practices for successful merger integration and outlines the ins and outs of merger integration. The podcasts dissect how and where organizations can improve their integration processes from a technology, global markets and banking perspective respectively, and serve to answer listeners’ primary questions about best practices for integrating organizations before, during and after a merger.
Julien Courbe Managing Director
The first podcast in the series, “What is Driving Merger Integration: A Technology Perspective,” showcases managing director of BearingPoint’s CIO Advisory Practice Julien Courbe. Julien’s insights span numerous best-of-breed recommendations, including the imperative need to enroll the business in all aspects of technology decisions during today’s lightning-speed mergers, where the two must work in aligned partnership to drive cost savings and efficiency.
Peter Horowitz Managing Director
The second podcast features BearingPoint senior vice president of Global Capital Markets Peter Horowitz. “What is Driving Merger Integration: A Global Markets Perspective” highlights the importance of aligning and maintaining company values and vision, and prioritizing client, product and service segmentation appropriately to move toward the future of the business.
Frank Mackris Managing Director
The final podcast in the series, “What is Driving Merger Integration: A Banking Perspective,” features Frank Mackris, vice president of BearingPoint’s Banking practice. Frank speaks to the increasing complexity of today’s mergers, and stresses the need for decision makers to seize opportunities to create new cultures, blend leadership and advance technologies to move forward with the best of everything from each organization.
To shed additional light on this timely topic, read the merger integration Q&A where the experts further elaborate on their ideas. What do you think drives merger and integration? Share your thoughts with us.
Matthew O’Mara Managing Director
Financial Services BearingPoint
The US economy is having a drastic effect on everyone particularly insurers. Economic events have created a more skeptical consumer who are looking for more economically sound companies. Insurers need to look at some key business drivers in 2009 in order to combat this growing customer cautiousness. Companies must now work within a new regulatory environment and changing customer demographics and globalization. In this podcast join Matthew O’Mara, Managing Director at BearingPoint as he explores these issues while offering insight into emerging IT spends and how firms can determine their short-term and long-term technology strategies. How have you seen the insurance industry change? Share your comments.
Sweeping Insurance Industry Change: Listen to the podcast
Join BearingPoint Managing Director, Lowell Alcorn, as he explores the strategies needed to understand loss mitigation. In recent weeks we’ve seen all the turbulence within some huge financial services organizations, and many are wondering what lessons can be learned from this crisis. When speaking with Lowell Alcorn, he explained that the two most important take-aways from the crisis are the need to improve risk management and managing data through aggressive loss mitigation. Key executives need to understand their risks and be able to report those risks. Many organizations also need to tighten up their aggressiveness around loss mitigation. Each and every company out there should be able to fulfill those two requirements when conducting business.
For future success, key executives should outline clear incentives, process and partnership changes. These three elements will keep a disaster from happening again. For example, as loans are being put together, we need to ensure that securitization documents need to be reviewed and possibly rewritten; a great case for proper process changes. The investors who own the loans need to form a tighter relationship to outline some common incentives. This will define a clear partnership where incentives are agreed upon. These investors also need to have leeway. Right now it’s contractually based, but there needs to be more agreement to ensure a successful outcome.
By making the necessary changes outlined, it will provide the end customer with more flexibility and stability in the future. This flexibility might provide someone with the opportunity to stay in their home, or different options to make payments. This will also ensure that the end customer has provided a lot more documentation prior to being granted funds they’ve requested. This crisis has taught us that we need improved risk management and reporting both internally and externally to ensure that risk is managed appropriately and that everyone involved is up-to-speed on how and why the transaction transpired.
Join BearingPoint Managing Director, Paul Ringmacher, as he discusses how BearingPoint recently helped a major North American bank replace a paper-based loan origination system for its small-business customers.
When completed, the project took small-business banking loan origination to a new level. An inefficient manual, paper-based system was transformed into an intelligent Web-based, front-end loan capture system used by bankers in the field. The project also features automatic interactions with back-office systems. In the first three months, the initiative became a field-tested success.
Today, it delivers straight-through processing, significantly decreasing front-end submission times, reducing decision times from up to six hours to less than 10 minutes—in most cases—and significantly lowering administrative overhead and application processing costs.
Join BearingPoint Managing Director, Sandeep Vishnu, as he explores risk strategies for market survival. With all the turmoil in the financial services space in recent weeks, everyone is wondering how we got into such a mess? What began as a contained subprime crisis has spilled over into all segments of the financial services industry, in what seems like a domino effect. In this podcast, we discuss the fundamental lack of risk transparency and risk governance as the two most important factors that led to this crisis and how companies can better prepare themselves for the future.
There are multiple lessons that can be learned from our current financial situation. Companies need to focus on transparency within their organization and develop a culture that is more risk sensitive so that risk governance takes on a more important role than it has in the past. We are learning that had senior management been aware of their data and level of risk, they might have seen what was emerging within their organization. To ensure we don’t ever see another crisis at this magnitude, companies need to instill a risk base culture that has a set shared of values among its employees. This doesn’t happen overnight, but there are steps that can be taken to head in that direction.
First and foremost, the data challenge needs to be made head on. If we’re going to eliminate this challenge in the future, we need to conquer this challenge now. The governance challenge needs to also be met. This is where BearingPoint can assist. We have developed numerous solutions to assist our clients with their current situations. We are putting a focus on what can be changed within a current organization. There are certain elements that if put into place now, can help institutions with their future struggles.
Join BearingPoint Managing Director and Senior Vice President of Global Markets, Peter Horowitz, as he explores the recent credit crisis and its contributors. With all the turmoil in the financial services space over the past few weeks, it seems that one must look at the source of the problem to really understand how it originated. It started out with a large amount of credit, coupled with lax lending standards and many heavy borrowers which created a heavy base of players, such as the mortgage owners and banks. It then trickled down to those that weren’t even familiar with the borrower or the actual real estate itself. This ‘mortgage value chain’ was the beginning of the turbulence we are all becoming so familiar with.
So what actually caused the crisis, especially within investment banks? The problem was too much leverage. These banks did not have sufficient capital to support the size of their ownership positions. When the position turned against them, both realized and unrealized losses, it wiped out their capital. It really comes down to the fact that their risk management systems failed the senior management of these giant organizations. It was so complex that the firms could not keep up with the changes.
BearingPoint has taken the proper measures to ensure their clients are being offered the most efficient solutions to deal with all the turbulence in the market. We offer a wonderful suite of solutions, such as our Risk Compliance and Security practices Trade Performance Solution that is assisting both buy and sell-side clients with all their risk-related issues. Our banking practice has also just introduced their Default Loan Loss Mitigation Solution, which is assisting clients with reducing the costs of defaults and foreclosures with investors. BearingPoint has been actively engaged with all their clients to ensure they are offering the most efficient and cost effective solutions to respond to this financial crisis and prepare for a successful future.
Join BearingPoint Senior Manager Pat Tobin as he explores the importance of Information Lifecycle Management (ILM) and how it can directly impact your bottom line. With a 50 percent growth in storage data of companies in recent years, the ILM Solution has evolved heavily over the past seven years. Companies that typically used a centralized system to store data now want much more control over their information and are turning to the ILM solution for that support.
The ILM Solution is also heavily used for E-discovery. With E-discovery costs on the rise, organizations are in need of a solution that assists with gathering only the necessary data, and not just a compilation of tons of document that are not needed. With every litigation suite, there is only a certain amount of documentation needed. Clients can experience massive cost decreases when just the necessary data is pulled.
With the many positives of designing an effective ILM solution come some struggles. Firms have legacy data all over the place. It is a very big obstacle trying to balance all of the data, plus input anything new. Another challenge is the need for a lot of governance. With all of the legalities, it’s extremely important to know the regulations and compliance issues up front. Lastly, an organization needs guidance on how to initiate this solution and where it should end. This is where BearingPoint can assist. ILM is a journey, but a journey worth pursuing. This journey will result in massive cost reduction and extreme efficiency for all your storage needs.