Corporate actions risk today is shaped by two reinforcing dynamics: market compression and infrastructural fragmentation. Compression reduces the time available to decide and instruct. Whereas fragmentation multiplies the places where information can drift or be misinterpreted. Together, they create a cost and risk profile that is hard to control with manual workflows and narrative-heavy data.
This second paper defines the parameters of corporate actions risk from announcement through to payment and claims; quantifies the operational impact of fragmentation; and sets out the design principles that ISO 20022 offers which helps firms to move from milestone driven batch processing to status driven, exception led controls.
