Capital Assessment Platform
One of the single most important developments in the area of risk management for banks is the new regulatory capital adequacy framework popularly known as Basel II issued by Basel Committee for Banking Supervision (BCBS) in 2006.
Since then most regulators globally have adopted this framework. Basel II framework brought about a paradigm shift in perspective regarding risk management domain. Regulators globally were suggested to adopt new risk elements and philosophies closer to economic concepts of risk and capital. Risk management became a strategic function which set the stage for convergence of regulatory and economic capital. Implementation of Basel II triggered novel challenges around data management, technology, business processes and availability of capital. Banks were encouraged to adopt and implement advanced risk concepts around objective statistical measures for estimation of capital for various risks, hitherto restricted only to credit and market risk.
Keeping with our endeavor to offer cutting edge solutions, and in order to cater to a key strategic need of the banking industry, we are pleased to introduce our product for economic and regulatory capital estimation. In addition to being fully compliant to Basel II and III guidelines, the platform has the capability to address various businesses and process related issues some of which are Risk Data Mart, general ledger reconciliation, collateral optimization etc.
The product is capable to cater to requirements of Pillar I and III of Basel II accord with respect to regulatory and economic capital calculation for financial institutions aligned with local regulatory requirements and global best practices. It has capability to address all three major categories of Credit Risk, Market Risk and Operational Risk for multiple regulatory jurisdictions simultaneously covering standardized and advanced approaches. Our product has capability to provide capital consolidation at group and solo entity level based on multiple regulatory businesses and reporting requirements.
The platform provides capital utilization covering multiple dimensions – at portfolio, product, business unit, counterparty group, customer, industry etc., with comprehensive drill down capabilities at last desired last level granularity.
Key Product Features
MetaData Management and Rule Configuration
The platform is designed to segregate Metadata management and Central Bank regulatory guidelines / business assumptions for home host, multi-entity, multi jurisdiction reporting. It can thus manage complex structural inter-relationships of static customer group data, portfolio static and regulatory data with dynamic exposure information.
Data Modeling and Exposure Management
Modeling at most granular level - Limit, transaction, facility, product and counterparty
Capital to Risk Assets Ratio
Capital to risk assets ratio based on multiple progressive approaches under Basel II / III guidelines. The product allows for parallel comparative computation using a menu of approaches
Credit, Market and Operational Risk
Calculation of regulatory and economic capital based on a menu of approaches from Standardized approach to Advanced Internal Based approach for credit risk capital computation. Market risk capital calculation based on Basel II regulatory guidelines – at consolidated trading book level. Additionally it allows scenario analysis for incremental trading book investment. Operational Risk Capital Module based on a menu of approaches as mentioned in Basel II accord.
Group Capital Consolidation
Capital consolidation model for addressing individual and consolidated home- host reporting for multiple business rules and regulatory guidelines.
Credit Risk Mitigation - Collateral Optimization
The product has a Credit Risk Mitigation module for apportionment of collateral and hence provides the optimum allocation of the same.
Integration with Pillar II Capital and ICAAP reporting
Provides an integrated risk view for the organization by enabling integration with other risk solutions like pillar II and ICAAP reporting, portfolio and liquidity management
Comprehensive Flexible Reporting Cube
Configurable front end based user defined reporting cube to enable capital reporting for multiple user defined dimensions for comprehensive regulatory and internal reporting covering pillar I, II and III under Basel guidelines.
Data and General Ledger Reconciliation
Distinctive general ledger reconciliation with additional reconciliation layer for data and reporting reconciliation