New Liquidity risk frameworks as well as Stress tests were in my top 10 list for 2011. Many leading regulators with UK FSA being the first, have issued new guidelines on this globally. Whilst some banks still await the expected convergence with Basel III. I was thrilled to see a recent announcement on a leading bank ahead of the curve on enhancing its risk management capabilities.

Early this month FinArch, a key Microsoft Risk solutions global alliance partner, announced that one of the world’s largest bank has selected its Financial Studio as its global solution for liquidity risk calculation and reporting. FinArch had successfully implemented the solution in London during 2010 for the bank’s European operation. Financial Studio is a comprehensive integrated Risk and Finance solution based on a single version of the truth in data terms, i.e. a common core Financial Data Architecture. Based on the Finance Resource Planning (FRP) concept, the solution provides complete functionality for the management of the entire accounting chain, enterprise risk management function and internal and external reporting obligations.

It’s yet another example of a mission critical Risk data model and business application being deployed on Microsoft SQL Server & platform. The need for real-time risk modeling,high performance computing, RAROC models will only increase in the coming months for the industry.

The FinArch solution provides the bank with a common Microsoft based data model & architecture in which to store, manage and enrich data from all parts of the business. The solution offers a powerful simulation engine for the expected slew of mandatory stress testing prescribed by multiple regulators. It also provides capabilities beyond regulatory compliance. It is also unique in the sense that it integrates Risk and Finance world genuinely providing risk, finance, accounting and reporting functionality in 1 single unified platform.

The core capabilities being:

  • Cash Flow analysis 
  • Valuations
  • Gap Analysis
  • Concentration Risk
  • Stress Testing simulations
  • Basel III convergence – counter cyclicality, leverage ratio, liquidity risk

Congratulations to the FinArch team for achieving this significant milestone, amongst many others. I look forward to sharing many other success stories in the area of Risk and compliance.

Source: Based on FinArch Press Release, March 2011