Solution Brief

Understand risk. Make decisions based on your firm’s affinity for it.

Financial risk solutions for financial services
The current global financial crisis underscores the importance of maintaining high standards in financial risk management. To improve practices, financial institutions must find balance between commercial success and business sustainability. Increase the quality, transparency and timeliness of risk information. Proactively manage risk exposure and liquidity. Understand complex risk effects such as contagion and correlation. These issues will likely be translated into new regulation. Modern financial risk management requires a unified approach to meet the challenges. In order to make and support decisions consistent with your firm’s risk appetite, you must understand your firm’s risk exposure across multiple lines of business—at any point of time and in a timely fashion. IBM financial risk management solutions can help you:


Meet prudential requirements while optimizing risk management costeffectiveness Gain state-of-the-art risk management capabilities Integrate individual risk management capabilities into an enterprise framework Achieve higher levels of portfolio optimization and business profitability Create a firm-wide risk management culture

Design, implement and enhance solutions to meet prudential requirements, such as Basel II and Solvency II, while optimizing risk management cost-effectiveness. Gain state-of-the-art risk management capabilities for each risk category, including market, credit, counterparty and liquidity. Integrate individual risk management capabilities into an enterprise framework supported by unified reporting and data management software, as well as a high-performance infrastructure. Connect risk, finance and business information systems to enable risk-based management and decision support, and consequently achieve higher levels of portfolio optimization and business profitability. Create a firm-wide risk management culture that is ingrained in the business strategy and throughout the entire product development life cycle.

IBM has a proven track record in helping financial companies address increasingly complex financial risk. Our capabilities and expertise are globally recognized by analyst and research organizations. IBM risk management solutions cover a range of services, from risk strategy development, execution and management, to business intelligence, security and data management.

Solution Brief

Understand risk. Make decisions based on your firm’s affinity for it.

Example offerings include:

Risk Data Rationalization Understanding the data sources, from across multiple business areas, which feed your risk decision analytics to establish a single source of truth, is a critical need across all areas of risk in your business. IBM can help you deploy an aggregated view of trusted data to simplify and streamline data pertinent to risk management. Risk Insight and Control Once rationalized, and then updated on a consistent and auditable manner, IBM can help you present an integrated enterprise wide view of risk based on real-time or near real-time data and analytics. Risk Optimization, Modeling & Scenario Analysis With data and analytics in place, leveraging your trusted data source, IBM can help you integrate risk, finance and performance management and leverage a predictive approach to business modeling, scenario analysis, planning and strategy execution. Credit analytics for financial services There is risk—and then there is smart risk. IBM can help banks become smarter about risk, understand industry-wide impacts, generate more revenue, build meaningful relationships and make more accurate lending decisions. Scalable Architecture for Financial Reporting Finance transformation starts with systems transformation. IBM offers an effective framework to help you manage millions of individual customer and contract ledger entries—each described by hundreds of required attributes—for today’s financial reporting.

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To help you enable projects in the Financial Risk space, as well as other areas of Risk Management in Financial Services, the IBM Banking Industry Framework has been established to combine the power of IBM software with banking-specific software extensions, solution accelerators and best practices, to help you deploy financial risk solutions faster and at lower cost and risk. The IBM framework can help you migrate to a more strategic and flexible technology architecture that is aligned with the needs of your business, one project at a time. Take advantage of a structured approach that combines best-in-class industry assets, repeatable software patterns and IBM Business Partner offerings to take a holistic approach to monitoring and managing financial risk, financial crimes detection and prevention, operational and IT risk, and governance and compliance.

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To learn more about financial risk solutions for financial services, please contact your IBM representative or IBM Business Partner, or visit:


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