Oracle's Financial Services ICAAP Analytics enables financial institutions to:
1) Comply with Pillar II requirements of the Basel II Accord by providing extensive reporting on risk identification, materiality assessment, quantification, and capital planning.
2) View risk across multiple organizational levels through customized dashboards and reports.
3) Provide C-level management with an enterprise-wide integrated view of risk to inform strategic decision making.
This document is the user guide for HP ArcSight Risk Insight version 1.1. It provides information on navigating the user interface and describes the key modules for asset profiling, risk factors, key performance indicators, dashboards and reports, vulnerability management, and settings configuration. The guide includes chapters on building a business model to represent an organization's assets in a hierarchical structure, defining risk factors and KPIs, using executive dashboards to analyze security risks, and managing vulnerabilities.
1) The document describes a large financial organization that uses MetricStream's operational risk management solution to improve collaboration, integrate risk processes across subsidiaries, and gain real-time insights into operational risks.
2) Previously, each subsidiary managed risks separately using siloed systems and processes, which led to duplication and lack of transparency.
3) MetricStream provided an integrated GRC platform to automate workflows, conduct risk assessments, define controls, and monitor key risk indicators across the organization. This improved efficiency, transparency, and proactive risk management.
Oracle Financial Services Anti Money Laundering is an enterprise platform that enables efficient detection, investigation and reporting of suspected money laundering and terrorist financing activity. It provides automated, comprehensive monitoring across all business lines to comply with regulations. Key features include industry-leading behavior detection, customized risk scoring and thresholds, and robust case management to streamline investigations and reduce costs.
Econometrics Analysis of Capital Adequacy Ratios and the Impact on Profitabil...iosrjce
This paper examines the econometrics analysis of capital adequacy ratios and the impact on the
profitability of Commercial Banks in Nigeria from 1980 – 2013. The objective is to investigate whether there is
a dynamic long run relationship between capital adequacy ratios and the profitability of commercial banks.
Time series data were sourced from Stock Exchange factbook and financial statement of quoted commercial
banks and the Johansen co-integration techniques in vector error correction model setting (VECM) as well as
the granger causality test were employed. The study has Return on Asset (ROA), Return on Investment (ROI)
and Return on Equity (ROE) as the dependent variables and the independent variables are Adjusted Capital to
Risk Asset Ratio (ACRR), Capital to Deposit Ratio (CTD), Capital to Net Loans and Advances Ratio (CNLAR),
Capital to Risk Asset Ratio (CRA) and Capital to Total Asset Ratio (CTAR). The empirical result demonstrated
vividly in the models that there is a positive long run dynamic and significant relationship between return on
asset and capital to risk asset ratio and capital to deposit ratio while others are negatively correlated. The
findings also revealed that there is bi-directional causality running from ROA to ACRR and ROA to CNLAR. We
therefore recommend that financial policies should be strengthened to deepen the capital base of Nigerian
Commercial banks to enhance bank profitability and sustain economic growth.
Economic Capital Model and System implementationsarojkdas
This document discusses frameworks and solutions for risk and capital management. It addresses establishing an enterprise risk management framework, optimizing capital allocation by linking risk to capital, and maximizing risk-adjusted returns. It emphasizes the importance of building these frameworks on a strong data and analytics foundation with continuous measurement and optimization. It also discusses identifying and quantifying total risk, allocating economic capital, and scenario analysis as part of an internal capital adequacy assessment process.
This document provides an overview of the Internal Capital Adequacy Assessment Process (ICAAP) that financial institutions must follow under Basel II regulations. It outlines the background and requirements of Pillar 1, the purpose and structure of the ICAAP under Pillar 2, the key risks that must be considered, and the documentation and ongoing procedures required. The ICAAP involves identifying all material risks, assessing the capital needed to cover each risk, forward planning for capital needs, documenting the assessment, and undergoing annual supervisory review by the Financial Services Authority.
This document provides an overview of Teradata including its history and architecture. It discusses Node, SMP, MPP, PE and AMP architectures as well as tools like Bynet, PDE, TDP, CLI and TPA. The document also covers topics such as indexes, hashing, SQL, tables, spaces, batch processing, PMON, BTEQ, fast load, multi load, Tpump and data export/import. Real-world scripts and performance tuning are also mentioned.
This document is the user guide for HP ArcSight Risk Insight version 1.1. It provides information on navigating the user interface and describes the key modules for asset profiling, risk factors, key performance indicators, dashboards and reports, vulnerability management, and settings configuration. The guide includes chapters on building a business model to represent an organization's assets in a hierarchical structure, defining risk factors and KPIs, using executive dashboards to analyze security risks, and managing vulnerabilities.
1) The document describes a large financial organization that uses MetricStream's operational risk management solution to improve collaboration, integrate risk processes across subsidiaries, and gain real-time insights into operational risks.
2) Previously, each subsidiary managed risks separately using siloed systems and processes, which led to duplication and lack of transparency.
3) MetricStream provided an integrated GRC platform to automate workflows, conduct risk assessments, define controls, and monitor key risk indicators across the organization. This improved efficiency, transparency, and proactive risk management.
Oracle Financial Services Anti Money Laundering is an enterprise platform that enables efficient detection, investigation and reporting of suspected money laundering and terrorist financing activity. It provides automated, comprehensive monitoring across all business lines to comply with regulations. Key features include industry-leading behavior detection, customized risk scoring and thresholds, and robust case management to streamline investigations and reduce costs.
Econometrics Analysis of Capital Adequacy Ratios and the Impact on Profitabil...iosrjce
This paper examines the econometrics analysis of capital adequacy ratios and the impact on the
profitability of Commercial Banks in Nigeria from 1980 – 2013. The objective is to investigate whether there is
a dynamic long run relationship between capital adequacy ratios and the profitability of commercial banks.
Time series data were sourced from Stock Exchange factbook and financial statement of quoted commercial
banks and the Johansen co-integration techniques in vector error correction model setting (VECM) as well as
the granger causality test were employed. The study has Return on Asset (ROA), Return on Investment (ROI)
and Return on Equity (ROE) as the dependent variables and the independent variables are Adjusted Capital to
Risk Asset Ratio (ACRR), Capital to Deposit Ratio (CTD), Capital to Net Loans and Advances Ratio (CNLAR),
Capital to Risk Asset Ratio (CRA) and Capital to Total Asset Ratio (CTAR). The empirical result demonstrated
vividly in the models that there is a positive long run dynamic and significant relationship between return on
asset and capital to risk asset ratio and capital to deposit ratio while others are negatively correlated. The
findings also revealed that there is bi-directional causality running from ROA to ACRR and ROA to CNLAR. We
therefore recommend that financial policies should be strengthened to deepen the capital base of Nigerian
Commercial banks to enhance bank profitability and sustain economic growth.
Economic Capital Model and System implementationsarojkdas
This document discusses frameworks and solutions for risk and capital management. It addresses establishing an enterprise risk management framework, optimizing capital allocation by linking risk to capital, and maximizing risk-adjusted returns. It emphasizes the importance of building these frameworks on a strong data and analytics foundation with continuous measurement and optimization. It also discusses identifying and quantifying total risk, allocating economic capital, and scenario analysis as part of an internal capital adequacy assessment process.
This document provides an overview of the Internal Capital Adequacy Assessment Process (ICAAP) that financial institutions must follow under Basel II regulations. It outlines the background and requirements of Pillar 1, the purpose and structure of the ICAAP under Pillar 2, the key risks that must be considered, and the documentation and ongoing procedures required. The ICAAP involves identifying all material risks, assessing the capital needed to cover each risk, forward planning for capital needs, documenting the assessment, and undergoing annual supervisory review by the Financial Services Authority.
This document provides an overview of Teradata including its history and architecture. It discusses Node, SMP, MPP, PE and AMP architectures as well as tools like Bynet, PDE, TDP, CLI and TPA. The document also covers topics such as indexes, hashing, SQL, tables, spaces, batch processing, PMON, BTEQ, fast load, multi load, Tpump and data export/import. Real-world scripts and performance tuning are also mentioned.
Oracle Financial Services Credit Risk Management provides a comprehensive view of credit risk across an organization. It aggregates credit risk data from multiple sources to eliminate data silos and provide over 300 pre-built reports on metrics like credit quality, reserves, and risk ratios. The software allows managers to identify significant portfolio issues, respond to regulatory requirements, and drill down into granular data for detailed analysis and decision making.
Performing Strategic Risk Management with simulation modelsWeibull AS
“How can you be better than us to understand our business risk?"
This is a question we often hear and the simple answer is that we don’t! But by using our methods and models we can utilize your knowledge in such a way that it can be systematically measured and accumulated throughout the business and be presented in easy to understand graphs to the management and board.
The main reason for this lies in how we can treat uncertainties 1 in the variables and in the ability to handle uncertainties stemming from variables from different departments simultaneously.
Prometeia’s unique business model offers a truly onestop
solution, combining extensive consulting services,
an integrated and cross-functional software package,
implementation support and methodological training.
The ERMAS Suite solution stays on top of regulatory
developments and meets all reporting needs. Its
functionalities and interfaces have been designed to be
fully adaptable, customisable, intuitive and easy to use
for the client.
The Importance of Key Risk Indicators in Risk Management360factors
Predict360 Risk Insights identifies existing risks operating outside of tolerance and predicts emerging risks using Artificial Intelligence (A.I.) to augment internal and external risk data.
For more details: https://bit.ly/45rjsei
Black Ice Partners is a global risk management consulting firm with over 20 years of experience in the financial services industry. They have a team of industry veterans who have experience implementing Basel regulations around the world. Their Risk Data Aggregation Solution addresses all levels of Basel compliance through logical data models that organize data and feed into analytic engines for credit, market, and operational risk. Black Ice has worked with numerous banks globally on projects such as ICAAP gap analysis, enterprise risk management, and roadmaps for Basel compliance.
This document discusses the growing use of economic capital models and risk-adjusted return on capital (RAROC) in performance management at banks following the 2008 financial crisis. It finds that while most banks now have economic capital models, they are primarily used to evaluate business units rather than individual transactions. There is still room for improvement in using these models to optimally allocate constrained capital resources. The document also examines issues like the granularity of capital allocation, setting RAROC targets and hurdle rates, and linking economic capital to performance management and pricing decisions. Overall, the use of economic capital modeling is gaining acceptance but banks have yet to fully leverage these tools in capital allocation and day-to-day business decisions.
1) The document discusses Quantifi's adoption of a microservices architecture to allow its risk management functionality to be consumed in different ways and be more receptive to technological evolution.
2) It highlights how firms are moving towards single integrated risk management solutions to reduce costs and consolidate positions, favoring trading, risk, and analytics contained within a single platform.
3) Quantifi provides a single solution for risk, analytics and trading across multiple asset classes built on Microsoft .NET and C# that offers rich functionality, extensibility, and scalability across major components.
Operational Risk Educational Courses to be held in Kenyachasecooper
The workshops will focus on the fundamentals of operational risk management and two current topics: risk appetite and scenario analysis. Attendees will learn about embedding operational risk governance, conducting risk and control assessments, using key risk indicators and loss data, and developing useful risk reports. Two master classes will provide practical guidance on setting risk appetite and using scenario analysis and stress testing. The courses aim to help participants effectively manage operational risk at their organizations.
This document discusses operational risk and key risk indicators (KRIs). It defines operational risk and provides examples of operational risk losses from past incidents. It explains that KRIs are metrics that provide information on an organization's current exposure level to a given operational risk. The document outlines the process for identifying KRIs, which involves risk and control self-assessments to identify inherent risks, controls, and residual risks and prioritize them. It also discusses setting thresholds for KRIs, collecting and reporting KRI data, and the roles involved in managing the KRI process. Examples of potential KRIs are provided for credit risk, financial markets activities, and other operational risks.
The document provides an overview of ICAP Romania's Agriculture Sector Study. The study analyzes key financial indicators and risk ratings of companies in the agriculture sector in Romania. It examines the sector on a tridimensional approach - financial analysis, geographical distribution, and status evolution over time. The study is an useful tool for understanding the competitive landscape and risk profiles of companies in the sector. ICAP Romania delivers the study in a PDF/PPT file and Excel file within 5 business days through their management consulting team.
An Intro to Resolver's Risk ApplicationResolver Inc.
As you know, mitigating risk is a crucial part of maintaining your organization’s health. But what’s your next step in ensuring the risks you’ve identified are actually being managed? In this presentation, you will learn the following aspects of an integrated approach to risk assessments and risk management: delegating responsive action and tracking action plan progress with automated reminders, easy re-assessment with or without a group workshop, trending, and alerts and analytics over time through web-based dashboards.
The company was facing challenges in managing risk across its global operations due to a lack of consistent reporting, data analytics, and collaboration between teams. It implemented the MetricStream enterprise risk management platform to gain visibility into its entire risk profile, integrate fragmented risk initiatives, and identify and assess key risk exposures. The MetricStream solution automated reporting, enabled real-time data analysis, and provided tools to monitor and track risks, issues, and remediation efforts. This helped align the company's risk management activities with its corporate goals.
The document discusses the challenges financial institutions face in an uncertain economic environment, termed the "New Normal". It emphasizes the importance of embedding risk management in decision making, using a common platform for risk, finance, and regulatory reporting. It also stresses the need to identify and manage various risks, from liquidity and credit to operational and compliance. Finally, it proposes that financial institutions undergo an "analytical transformation" through investments in a unified data model, infrastructure, and applications to achieve a holistic view of risk across the organization.
predictive-analytics-the-silver-bullet-in-efficient-risk-management-for-banksArup Das
This document discusses how predictive analytics can help banks improve risk management. It begins by outlining the major risks banks face and the regulatory requirements around risk management. It then discusses how predictive analytics can enhance various aspects of enterprise risk management, including improving credit decisioning, enhancing credit quality, and enabling a 360-degree view of customers. The document provides examples of how social network analysis and big data can generate insights to better identify fraud and risk. Overall, the document argues that predictive analytics, when embedded into risk management frameworks, can help banks more efficiently identify and respond to risks.
Safety in design paper a live picture of organisational risk by linking risk...Alex Apostolou
Bowties are an efficient, highly adaptable and well-accepted tool for the visualisation and analysis of risk. Even to the untrained eye, the bow tie’s map-like elements are quickly intuited (overall shape, left-to-right flow of linked boxes, standard labels, etc.) and help to define the risk’s dimensions, boundaries and interactions, encouraging navigation, exploration, discovery and hopefully, preparedness.
However, by virtue of their scenario-based frame of reference there is often a great deal of overlap within bowtie registers. Left unresolved in an assurance process, these overlaps would increase the resourcing and verification burden unsustainably.
This case study provides an insight to the key learnings from the implementation of an integrated risk management and control assurance program into an explosives and chemicals manufacturing organisation with 65+ sites. Key amongst the objectives was the creation of a live risk profile to best guide budgetary decision-making for risk reduction, facilitating a more comprehensive understanding of current fatality risk and control at all levels of the business – in the most resource efficient manner possible.
The implemented solution involved identifying the common elements in more than 1,600 bowties and managing them centrally, providing a highly-leveraged assurance approach delivering site and corporate risk profiling at a lower cost, in-built continuous improvement, real-time data sharing, and dynamically calculated bowties; all managed with little or no on-site expertise.
SAP HANA for Capital Markets Risk ManagementMartin Tenk
nother great example of the innovations that HANA can provide. This time in Capital Markets, where it enables immediate intraday risk reporting and analysis.
Building a Holistic Capital Management FrameworkCognizant
For banks, capital management strategy is a complex process that must take into account a vast range of regulatory and financial factors. Adopting the holistic approach detailed here will enable banks to provide sustainable value to their clients.
The document discusses a banking solutions product called 1KEY that provides planning, analysis, and reporting capabilities for banks. It allows banks to analyze customer profitability, manage risk, and monitor organizational performance at the branch level. The 1KEY framework integrates data from various bank systems and uses business intelligence tools to generate reports and dashboards. This helps banks make better planning decisions, identify opportunities to increase revenues and cut costs, and ensure regulatory compliance.
Operational risk management is becoming an important part of corporate governance frameworks. It aims to proactively identify, assess, and manage risks to improve transparency, efficiency, and shareholder value while protecting reputation. Recent regulatory scrutiny and fines show the importance of properly managing operational risks. Actuaries are well-suited to lead operational risk management due to their understanding of risk assessment and financial impacts.
Oracle Financial Services Credit Risk Management provides a comprehensive view of credit risk across an organization. It aggregates credit risk data from multiple sources to eliminate data silos and provide over 300 pre-built reports on metrics like credit quality, reserves, and risk ratios. The software allows managers to identify significant portfolio issues, respond to regulatory requirements, and drill down into granular data for detailed analysis and decision making.
Performing Strategic Risk Management with simulation modelsWeibull AS
“How can you be better than us to understand our business risk?"
This is a question we often hear and the simple answer is that we don’t! But by using our methods and models we can utilize your knowledge in such a way that it can be systematically measured and accumulated throughout the business and be presented in easy to understand graphs to the management and board.
The main reason for this lies in how we can treat uncertainties 1 in the variables and in the ability to handle uncertainties stemming from variables from different departments simultaneously.
Prometeia’s unique business model offers a truly onestop
solution, combining extensive consulting services,
an integrated and cross-functional software package,
implementation support and methodological training.
The ERMAS Suite solution stays on top of regulatory
developments and meets all reporting needs. Its
functionalities and interfaces have been designed to be
fully adaptable, customisable, intuitive and easy to use
for the client.
The Importance of Key Risk Indicators in Risk Management360factors
Predict360 Risk Insights identifies existing risks operating outside of tolerance and predicts emerging risks using Artificial Intelligence (A.I.) to augment internal and external risk data.
For more details: https://bit.ly/45rjsei
Black Ice Partners is a global risk management consulting firm with over 20 years of experience in the financial services industry. They have a team of industry veterans who have experience implementing Basel regulations around the world. Their Risk Data Aggregation Solution addresses all levels of Basel compliance through logical data models that organize data and feed into analytic engines for credit, market, and operational risk. Black Ice has worked with numerous banks globally on projects such as ICAAP gap analysis, enterprise risk management, and roadmaps for Basel compliance.
This document discusses the growing use of economic capital models and risk-adjusted return on capital (RAROC) in performance management at banks following the 2008 financial crisis. It finds that while most banks now have economic capital models, they are primarily used to evaluate business units rather than individual transactions. There is still room for improvement in using these models to optimally allocate constrained capital resources. The document also examines issues like the granularity of capital allocation, setting RAROC targets and hurdle rates, and linking economic capital to performance management and pricing decisions. Overall, the use of economic capital modeling is gaining acceptance but banks have yet to fully leverage these tools in capital allocation and day-to-day business decisions.
1) The document discusses Quantifi's adoption of a microservices architecture to allow its risk management functionality to be consumed in different ways and be more receptive to technological evolution.
2) It highlights how firms are moving towards single integrated risk management solutions to reduce costs and consolidate positions, favoring trading, risk, and analytics contained within a single platform.
3) Quantifi provides a single solution for risk, analytics and trading across multiple asset classes built on Microsoft .NET and C# that offers rich functionality, extensibility, and scalability across major components.
Operational Risk Educational Courses to be held in Kenyachasecooper
The workshops will focus on the fundamentals of operational risk management and two current topics: risk appetite and scenario analysis. Attendees will learn about embedding operational risk governance, conducting risk and control assessments, using key risk indicators and loss data, and developing useful risk reports. Two master classes will provide practical guidance on setting risk appetite and using scenario analysis and stress testing. The courses aim to help participants effectively manage operational risk at their organizations.
This document discusses operational risk and key risk indicators (KRIs). It defines operational risk and provides examples of operational risk losses from past incidents. It explains that KRIs are metrics that provide information on an organization's current exposure level to a given operational risk. The document outlines the process for identifying KRIs, which involves risk and control self-assessments to identify inherent risks, controls, and residual risks and prioritize them. It also discusses setting thresholds for KRIs, collecting and reporting KRI data, and the roles involved in managing the KRI process. Examples of potential KRIs are provided for credit risk, financial markets activities, and other operational risks.
The document provides an overview of ICAP Romania's Agriculture Sector Study. The study analyzes key financial indicators and risk ratings of companies in the agriculture sector in Romania. It examines the sector on a tridimensional approach - financial analysis, geographical distribution, and status evolution over time. The study is an useful tool for understanding the competitive landscape and risk profiles of companies in the sector. ICAP Romania delivers the study in a PDF/PPT file and Excel file within 5 business days through their management consulting team.
An Intro to Resolver's Risk ApplicationResolver Inc.
As you know, mitigating risk is a crucial part of maintaining your organization’s health. But what’s your next step in ensuring the risks you’ve identified are actually being managed? In this presentation, you will learn the following aspects of an integrated approach to risk assessments and risk management: delegating responsive action and tracking action plan progress with automated reminders, easy re-assessment with or without a group workshop, trending, and alerts and analytics over time through web-based dashboards.
The company was facing challenges in managing risk across its global operations due to a lack of consistent reporting, data analytics, and collaboration between teams. It implemented the MetricStream enterprise risk management platform to gain visibility into its entire risk profile, integrate fragmented risk initiatives, and identify and assess key risk exposures. The MetricStream solution automated reporting, enabled real-time data analysis, and provided tools to monitor and track risks, issues, and remediation efforts. This helped align the company's risk management activities with its corporate goals.
The document discusses the challenges financial institutions face in an uncertain economic environment, termed the "New Normal". It emphasizes the importance of embedding risk management in decision making, using a common platform for risk, finance, and regulatory reporting. It also stresses the need to identify and manage various risks, from liquidity and credit to operational and compliance. Finally, it proposes that financial institutions undergo an "analytical transformation" through investments in a unified data model, infrastructure, and applications to achieve a holistic view of risk across the organization.
predictive-analytics-the-silver-bullet-in-efficient-risk-management-for-banksArup Das
This document discusses how predictive analytics can help banks improve risk management. It begins by outlining the major risks banks face and the regulatory requirements around risk management. It then discusses how predictive analytics can enhance various aspects of enterprise risk management, including improving credit decisioning, enhancing credit quality, and enabling a 360-degree view of customers. The document provides examples of how social network analysis and big data can generate insights to better identify fraud and risk. Overall, the document argues that predictive analytics, when embedded into risk management frameworks, can help banks more efficiently identify and respond to risks.
Safety in design paper a live picture of organisational risk by linking risk...Alex Apostolou
Bowties are an efficient, highly adaptable and well-accepted tool for the visualisation and analysis of risk. Even to the untrained eye, the bow tie’s map-like elements are quickly intuited (overall shape, left-to-right flow of linked boxes, standard labels, etc.) and help to define the risk’s dimensions, boundaries and interactions, encouraging navigation, exploration, discovery and hopefully, preparedness.
However, by virtue of their scenario-based frame of reference there is often a great deal of overlap within bowtie registers. Left unresolved in an assurance process, these overlaps would increase the resourcing and verification burden unsustainably.
This case study provides an insight to the key learnings from the implementation of an integrated risk management and control assurance program into an explosives and chemicals manufacturing organisation with 65+ sites. Key amongst the objectives was the creation of a live risk profile to best guide budgetary decision-making for risk reduction, facilitating a more comprehensive understanding of current fatality risk and control at all levels of the business – in the most resource efficient manner possible.
The implemented solution involved identifying the common elements in more than 1,600 bowties and managing them centrally, providing a highly-leveraged assurance approach delivering site and corporate risk profiling at a lower cost, in-built continuous improvement, real-time data sharing, and dynamically calculated bowties; all managed with little or no on-site expertise.
SAP HANA for Capital Markets Risk ManagementMartin Tenk
nother great example of the innovations that HANA can provide. This time in Capital Markets, where it enables immediate intraday risk reporting and analysis.
Building a Holistic Capital Management FrameworkCognizant
For banks, capital management strategy is a complex process that must take into account a vast range of regulatory and financial factors. Adopting the holistic approach detailed here will enable banks to provide sustainable value to their clients.
The document discusses a banking solutions product called 1KEY that provides planning, analysis, and reporting capabilities for banks. It allows banks to analyze customer profitability, manage risk, and monitor organizational performance at the branch level. The 1KEY framework integrates data from various bank systems and uses business intelligence tools to generate reports and dashboards. This helps banks make better planning decisions, identify opportunities to increase revenues and cut costs, and ensure regulatory compliance.
Operational risk management is becoming an important part of corporate governance frameworks. It aims to proactively identify, assess, and manage risks to improve transparency, efficiency, and shareholder value while protecting reputation. Recent regulatory scrutiny and fines show the importance of properly managing operational risks. Actuaries are well-suited to lead operational risk management due to their understanding of risk assessment and financial impacts.
1. ORACLE DATA SHEET
ORACLE FINANCIAL SERVICES INTERNAL
CAPITAL ADEQUACY ASSESSMENT
PROCESS ANALYTICS
ORACLE’S FINANCIAL SERVICES The increasingly interdependent nature of financial risk has rendered the
ANALYTICS ENABLE INSTITUTIONS traditional approach of managing these risks in separate silos, nearly obsolete.
TO MEASURE AND MEET RISK
The current global economic crisis has dramatized the need for financial
ADJUSTED GROWTH OBJECTIVES,
institutions to have a view of risk that is not only enterprise-wide, but directly
PROMOTE A RISK MANAGEMENT
CULTURE AND MITIGATE THE COSTS
integrated with a sound capital management strategy. Oracle Financial
OF REGULATION THROUGH THE Services ICAAP Analytics enable institutions to make effective operational and
LOWEST POSSIBLE TCO strategic capital decisions by providing extensive reporting and dashboards
KEY FEATURES covering all aspects of Pillar II requirements of Basel II.
Pre-configured reports covering Pillar I
and Pillar II reporting
Comply with Pillar II requirements of Basel II Accord
Enables tabular as well as graphical
reporting The Basel II Accord has stressed the need for financial institutions to develop suitable internal
Drill-through functionality allows for procedures and systems in order to improve risk management practices. Oracle Financial
detailed analysis Services ICAAP Analytics provides extensive reports covering risk identification, materiality
Risk measures and capital numbers assessment, risk quantification and capital planning. These analytics are compliant with the
displayed as point-in-time values, Internal Capital Adequacy Assessment Process (ICAAP) prescribed under Pillar II of Basel II
trends, heat maps, distributions etc.
Accord.
Metrics displayed across multiple levels
and risk categories View risk across multiple levels in the organization
KEY BENEFITS Oracle Financial Services ICAAP Analytics recognize the need for delivering the right
Provides an enterprise-wide view of risk information to the right person, thus enabling institutions to view risk across multiple levels
to the top management
and roles within the organization. Tailor-made dashboards deliver custom views and reports
Compliance with ICAAP requirements of
specific to the needs of each user precisely when needed to manage risks and optimize capital
Pillar II of Basel II Accord
more effectively than ever before.
Internal Risk Management
Enables capital allocation decisions Provide pervasive and actionable insight to C-level management
based on risk profile
Oracle Financial Services ICAAP Analytics delivers a comprehensive set of reports to the
Improves decision making ability by CFO and CRO in a manner that provides an enterprise-wide integrated view of risk. It enables
providing timely and accurate
them to view the emerging trends in key metrics and also drill-through the reports to analyze
information
these in detail. The on-demand information provided through the analytics enables the C-level
management to make informed and timely risk and performance based decisions.
Bring all material risks on to the organizational radar
ICAAP mandates each institution to identify all risks it faces and then determine the
associated materiality. Oracle Financial Services ICAAP Analytics provides reports, charts
and heat maps that helps institutions identify and assess multiple risks. It provides the
assessment criteria for each risk and displays the respective scores. Each risk is categorized as
Immaterial, Low, Medium, High, and Very High which enable institutions to take suitable
action to manage risks based on their materiality levels. Comparison of risk assessment score
is enabled across risk categories as well as across time.
2. ORACLE DATA SHEET
RELATED PRODUCTS
The following solutions are also available
from Oracle Financial Services:
Oracle Financial Services Economic
Capital Advanced
Oracle Financial Services Market Risk
Oracle Financial Services Retail Credit
Risk
Oracle Financial Services Corporate
Credit Risk
Oracle Financial Services Operational
Risk Economic Capital
Oracle Financial Services Operational
Risk Figure 1: Assessment of Risk Materiality
Oracle Financial Services Basel
Regulatory Capital Quantify risk across multiple categories
Oracle Financial Services Asset Oracle Financial Services ICAAP Analytics has a comprehensive set of pre-configured reports
Liability Management covering credit risk, market risk, operational risk, strategic risk, liquidity risk, interest rate risk
Oracle Financial Services Advanced
in the banking book, and reputational risk. These reports are designed to cater to the
Analytical Applications Infrastructure
regulatory and the internal risk management needs of an institution.
Oracle Financial Services Enterprise
Risk Infrastructure Regulatory and economic capital numbers can be viewed and compared which enable the
reconciliation of ICAAP with Pillar I. Metrics such as Value-at-Risk, Earnings-at-Risk, PD,
LGD, Re-pricing Gap, Economic Value of Equity, Liquidity Ratios; Component VaR, etc. are
reported at multiple levels within the organization. In addition, interim reports such as
Frequency and Severity analysis in case of operational risk, “allocate cash flow” report in case
of market risk and so on are displayed. These risk metrics can be viewed in the form of point-
in-time values, trends and comparisons. The drill-through functionality of the application
enables a detailed analysis of the various metrics.
Figure 2: Comparison of Annual Liquidity Gap across Forecast Scenarios
Estimate risk under extreme scenarios
Oracle Financial Services ICAAP Analytics allows banks to assess risk under extreme
scenarios of economic conditions. Institutions can view the impact of a single scenario across
multiple risks thereby recognizing the effects of the overlap of risk factors which are common
to multiple risks. The application estimates key risk and capital measures under adverse
scenarios and allows for comparison between the effects of multiple scenarios. It also displays
the distribution of the change in key measures on applying the stress scenario.
2
3. ORACLE DATA SHEET
Figure 3: P&L Distribution under Stress Scenario
Achieve sound capital planning
Sound capital planning and management is the ultimate aim of every organization. Oracle
Financial Services ICAAP Analytics provides robust capital planning to ensure that banks
possess adequate capital to meet current and future regulatory and economic capital
requirements under baseline and stressed scenarios. This is enabled through reports
forecasting profit and loss, balance sheet and capital, trend analysis of capital requirements
and availability and comparison of target and actual capital.
Figure 4. Comparison between Capital Requirement and Available Capital
About Oracle Financial Services Analytical Applications
Oracle Financial Services Internal Capital Adequacy Assessment Process Analytics is part of
the Oracle Financial Services Analytical Applications family of solutions for the global
financial services industry.
Oracle Financial Services Analytical Applications are built upon a commonly available
analytical infrastructure consisting of a unified financial services data model, analytical
computations and the industry-leading Oracle Business Intelligence platform.
Oracle Financial Services Analytical Applications include award-winning solutions for
Enterprise Risk Management; Governance, Risk, and Compliance (GRC); Enterprise
Performance Management (EPM); and Customer Insight for financial services.
3