As markets collapsed at the start of the pandemic, banks struggled to have a clear and consistent view of their risks in both banking and commercial portfolios. But with heightened volatility, ongoing regulatory requirements, and new telecommuting mandates to manage, banking teams have had to quickly perform complex risk calculations, simulate the impacts of stress, and gain real-time information across the business. ‘company.
A major global provider of financial technology solutions, FISMT was in a unique position to help clients overcome these challenges and optimize risk management for bankers and traders. Such scenarios are among the reasons why the judges awarded FIS two prizes at the Bank ALM and the risk scorecard software for the categories of the year. These features featured prominently in many product submissions.
Bank ALM software of the year: FIS Balance sheet manager (formerly Ambit Focus)
At the height of the pandemic, the treasury, risk and finance departments of banks stepped up their risk management response to calculate new scenarios in the universe of risk profiles for regulatory and internal purposes.
Teams had to simulate all kinds of risk numbers (such as revaluation spreads, cash flow sensitivities, policy rate durations or liquidity profiles) into the future to see the impact under many assumptions and models. different (including new business).
For these purposes, FIS Balance Sheet Manager enables banks to seamlessly integrate various balance sheet management processes – ALM/IRRBB, FTP, liquidity management (dynamic LCR/NSFR, liquidity stress /ILAAP), Regulatory reports, IFRS 9 depreciation, hedge accounting, stochastics, market risk and capital planning. It does this within a single platform that uses a common engine of cash flow, valuation and simulation to consistently simulate the balance sheet in the future and optimize the risk / reward profile.
The solution helps banks align treasury, risk and finance using common data, consistent models and comprehensive results to support business decision making, for increased consistency and lower total cost of ownership.
These capabilities have been in place for a long time due to FISinvestments over the years in advancing its technology. The awards recognize its ability to leverage years of expertise in targeted innovative products while modernizing its platforms.
Mark Neukomm, Director of Product Management, FIS, says: “Drawing on more than 20 years of solid experience in ALM and balance sheet management, Balance Sheet Manager offers an effective combination of standardization and flexibility.
The solution’s standard models help streamline control and risk management processes, while flexible formula modeling capabilities support more comprehensive analysis and complex modeling with access to position information and results. This includes scenario-dependent market data (of all risk and macro factors), external parameters, vectors and look-up tables, etc.
Additionally, Balance Sheet Manager can provide an integrated view of the results of all metrics through a variety of built-in reports or bank-specific cube-based dashboards. In addition, all results and intermediate results are available at position, portfolio level and in pre-defined reporting structures which can decompose and present results and portfolios as needed.
Balance Sheet Manager serves level 1-5 banks in over 60 countries. For banks and capital markets around the world facing disruptions that have impacted their underlying models and assumptions, 2020 has been a year to deliver unparalleled scalability for global customers.
It was also a year that put cloud computing concepts to the test on multiple levels, as well as a rush to managed services as millions of workers and customers turned to online environments to conduct their business. activities. FISS significant investment in cloud infrastructure begins with a focus on a world-class security architecture along with component-based disaster recovery, as well as high resiliency and availability.
Additional computing power that FIS deployed on demand have improved performance and reduced costs. Balance Sheet Manager has since extended managed services to include testing as a service and data services, in addition to 24 hour support.
the FIS The team has helped clients complete over 300 projects globally in 2020 with a blend of functional and technical expertise, along with client-specific implementation practices.
Neukomm concludes: “We follow a holistic and integrated approach to balance sheet management. As all risk areas share the same engine, our single platform not only ensures consistency, but also enables modeling of interdependencies between different risk areas to facilitate risk management and stress testing at scale. of the company globally.
Risk Dashboard Software of the Year: FIS Enterprise Risk Suite (formerly Adaptiv)
The data sorting power behind the Risk Portal expresses the breadth of innovation with real-time data visualization that has advanced in just a few years.
The impacts are reflected in the capacity of the dashboard FIS Enterprise Risk Suite software for graphing complex risk data, modeling and calculations in real time. Markus Seiser, Senior Vice President, Division Director,
FIS cross-asset trading and risk business, explains: “Our dashboards, risk reports and visualizations help users perform a more effective analysis of market risks,
regulatory risks and calculations.
Some of the key processing features that feed into the presentation layer include FISmemory cube owner of. Using the latest Angular Framework, SignalR, and Kafka messaging technologies to deliver constantly up-to-date information, end users can view dashboards that allow analysis and breakdown of results across different metrics, while providing intuitive analysis. trends for viewing data over a longer period. Time range.
The agile development team has improved survey views over the past year, for example by allowing user queries to populate dashboards through KPIs (KPIs), express PivotTable views on the in-memory cube, and explore business-level data. the KPIThe s are extremely easy for users to create and modify, as they can be broken down by attributes in the cube.
If an analysis scenario is about to be presented to different groups in the company, users create their own metrics, chain them together. KPI maps, then customize the views. All results are then cached to allow unlimited customization of the home page, which is invaluable when working from a common data environment.
Perhaps the most notable aspect of the Enterprise Risk Suite is its performance during the pandemic, especially when remote working was widely mandated across the industry.
The solution is designed to be user-friendly so that custom configurations can be migrated between environments. Ease of use with KPIs, survey cards and security help new users get on board with training to bring them to the expert level on the system.
Seiser adds, “From high-level risk managers to individual traders, users can rely on the solution’s connected dashboards and market data workflows to aggregate big data at lightning speed, easily find main drivers of their risk and attribute them to underlying changes in market data.
“And for on-the-fly simulation analysis of outcome data, multiple calculations can be stacked to assess the impact of complex changes, then shared among users for efficient collaboration across the enterprise. “
Committed to constant innovation, FIS continues to invest around 6-7% of its turnover each year in R&D. Watch this space to see further into the future of risk.
The judges said:
Bank ALM system of the year
- “Leverage its years of expertise in firmly focused innovative products and also modernized its platforms. “
- “A solid company profile, a capacity for survival and an impressive heritage. Mature, feature-rich product that has been gradually upgraded along with replaced and rebuilt components.
- “Impressive clientele, proof of good R&D, and [a strong case study]. “
Risk of the Year Dashboard Software
- “Very competitive offers, at the forefront of big data, database science, User interface design and safety parameters for remote offset. This entry visualizes explanations of the products that elevate their value proposition.
- “Detailed relevant pitch. “
- “Technically adapted solutions. “
- “Rich in features and functions.”