Full support for asset and liability management, market analytics and Basel III
Temenos, a market-leading provider of banking software, has unveiled its latest risk offering, Insight Risk Intelligence, designed to equip banks with the advanced tools required to effectively support Basel II and III, Asset and Liability Management (ALM) and market risk management in today’s ever changing market. Insight Risk Intelligence is an extension of Temenos’ business intelligence suite, Insight, providing a flexible platform that can integrate with multiple systems for complete data consolidation and analysis to support decision making across the entire banking organisation.
An enterprise wide risk management platform, Insight Risk Intelligence is fully integrated with Temenos’ other products including its market leading core banking system, TEMENOS T24.
Risk as an enterprise
Once the preserve of specialist departments and applications, risk is becoming of increasing interest to all major stakeholders within financial institutions. New regulatory guidelines and risk adversed business strategies have brought the need for enterprise wide monitoring of risk higher up the boardroom agenda.
Today, banks must be able to react quickly to changing market conditions; a sophisticated and comprehensive understanding of all business activities is incremental to achieving this, by being able to leverage more advanced approaches to assessing and mitigating risk exposures.
Rapid value
As an integrated offering, Insight Risk Intelligence delivers rapid value for these financial institutions, which are looking to not only achieve regulatory compliance but leverage the cost advantages gained through improved risk management capabilities by generating risk adjusted return on capital (RAROC) to drive profitability.
It delivers a flexible framework that can be easily adapted to meet different local and international reporting requirements, providing the tools to help banks maximise the benefits whilst preparing for Basel III compliance.
With the new platform, senior managers can examine and compare the performance of different business divisions, price products more accurately to represent risk factors and capital consumption and manage capital allocations to ensure long term profitability.
The platform can be deployed out of the box in as little as four weeks and consists of three modules designed to provide banks with the latest tools to addressing advanced risk modelling and the latest regulatory requirements, which can be implemented collectively or separately according to a bank’s needs:
Asset and Liability Management (ALM) – provides a wide range of advanced and comprehensive liquidity and interest rate risk analytics and reporting including balance sheet modelling, stress testing, duration and liquidity gaps reporting.
Regulatory Capital – provides advanced credit, market and operational risk management capabilities, enabling banks to analyse exposures and accurately calculate regulatory capital to meet full Basel II compliance and assist in the journey to Basel III compliance
Market Analytics – provides banks with a wide range of analysis tools including VaR (Value at Risk) engine, yield curve modelling and pricing tools so they can extend and improve their analytical capability. It is underpinned by a powerful reporting engine which delivers granular and more valuable report generation.
USB Bank Plc
USB Bank Plc, a growing domestic bank in Cyprus implemented the Regulatory Capital module. Deployed in just two weeks, this enabled the bank to achieve full Basel II compliance with extended reporting to cover COREP to meet the central bank deadline. Loukia Loukianou, Manager, Information Technology at USB Bank plc commented:
“Achieving full Basel II compliance with our previous system proved challenging; we needed a fully integrated platform to enhance the visibility of our risk exposures and help overcome high volumes of regulatory reporting requirements to achieve the stringent deadlines imposed by the Basel II framework. As Insight Risk Intelligence is interfaced with T24, we were able to plug and play in two weeks, which was vital in meeting the reporting deadlines”.
Cedric La Rouzo, Commercial Director, Insight Risk Intelligence comments: “Temenos provides banks like USB Bank plc with industry standard models out of the box, which enables a rapid deployment to create value quickly and significantly lower the total cost of ownership. We are confident that this latest offering will meet the global demand for a functionally rich and fully integrated risk management toolkit, which is already evident in the strong take up we have seen so far.”
