Risk AggregatioN/Capital Management

Generate an Aggregated View of Your Organization’s Risk-Based Capital

Institutions spend millions of dollars every year calculating and managing their aggregated risk in order to increase competitiveness and optimize the allocation of their risk-based capital. Their challenge is to gain an understanding of the specific risks for individual business units, across geographies and by risk types, as well as get an accurate view of the aggregated risk to the company.

Organizational reality and market complexity only increase the difficulty of their task:

• Local, legacy systems can compromise an accurate view of risk-based capital
• Corporate structure changes; adding and/or deleting whole sets of variables
• Understanding the level of risk across the organization and, at the same time, across risk types (credit, market, operational, and insurance)
• Optimizing risk vs. return when calculating reserve requirements across multiple lines-of-business, geographies and risk types
• Responding quickly and proactively to changing market dynamics while offering protection from catastrophic events
• Allocating the organization’s capital based on its risk appetite and its regulatory constraints

In order to stay a step ahead of your competition, internal corporate maneuvers and regulators, a risk aggregation and capital management solution must include the following:

• Consolidated View of Risk: Easily access an aggregated view of risk for your organization by line-of-business, geography, and risk type
• Scalable Framework: Integrate your current data architecture and maximize your current investment while building in scalability to meet future risk management requirements
• Reporting Capabilities: Create and distribute graphic representations of your organization’s risk on-demand
• Integrated Capital Management: Use both an aggregated and a drill-down view of economic capital to make more informed decisions

Built using the award-winning S-PLUS platform, the Insightful Financial solution for Risk Aggregation/Capital Management provides specialized multi-dimensional functionality to perform sophisticated economic and regulatory capital calculations and risk aggregation for insurance companies and banks.

Key Features Include:

• Unified naming (vars, dims)
• Dimensions controlled by meta-data
• Automated dimension handling
• Fixed size objects
• Easy aggregation and expansion
• Easy element-wise operation on whole arrays
• Creation by input, initialization, or calculation
• Use of standard array operations
• arithmetic operations
• indexing

To ensure that your institution understands and accounts for all dimensions of its risk, please contact us via email or call in the US/Canada (800) 569-0123, UK +44 (0) 1256 339800, or Zurich +41 (0)44 251 68 44.