Methods for sound risk management are of increasing interest among Wall Street investment banking and
brokerage firms in the aftermath of the October 1987 crash of the stock market. As the knowledge of advanced
technology applications in risk management increases, financial firms are finding innovative ways to use them
practically, in order to insulate themselves. The recent development in models, the software and hardware, and
the market data to track risk are all considered advances in Risk Management Technology (RMT). These
advances have affected all three stages of risk management: the identification, the measurement, and the
formulation of strategies to control financial risk. This article discusses the advances made in five areas of
RMT: communication software, object-oriented programming, parallel processing, neural nets and artificial
intelligence. Systems based on any of these areas may be used to add value to the business of a firm. A
business value linkage analysis shows how the utility of advanced systems can be measured to justify their costs.Information Systems Working Papers Serie