Misys FusionRisk Credit Software overview. Take control of credit risk. Gain better visibility into corporate default

Transcription

1 Misys FusionRisk Credit Software overview Take control of credit risk Gain better visibility into corporate default

2 Best practice credit risk management demands a combination of careful micro-underwriting and insight into broad portfolio characteristics. A single application to address these two distinct risk management challenges can assure consistency of the underlying data and facilitate greater collaboration across these two functions. David M. Rowe PhD Misys Senior Strategist, Risk and Regulation

3 Take control of credit risk Credit risk is a source of opportunity. Up-to-date and transparent credit risk intelligence improves control and customer service from originating, monitoring and controlling credit through the contracts lifecycle to consolidating credit information to support portfolio management decisions. FusionRisk provides a good platform for Axis needs, such as VaR, limits, and compliance with our internal model requirements. Pravat Dash Head of Market Risk Management, Axis Bank Misys FusionRisk Credit supports global exposure and counterparty management as well as making complex workflow approvals simple and efficient for all credit risk transactions. It reduces operational risks by automating credit risk management rules, processes and approvals. Straight-through processing (STP) capabilities support most standard credit arrangements, allowing loan officers and credit risk managers to focus most of their time and resources on analysing the most profitable transactions. Misys FusionRisk Credit Software overview 3

4 Product capabilities Misys FusionRisk Credit consolidates and manages credit limit information in real-time across all instrument types. It enables risk managers to monitor credit exposures so that limits are used efficiently not only at the desk or local level, but across the entire enterprise. Front-office involvement in risk management. Traders can actively check limits from any front office system in real-time. Simulation functions enable users to examine the effects of trades before extending a quote to the customer. Excess management is controlled with a wide range of reports and on-line information tools. Collateral management FusionRisk integrates enterprisewide collateral management using an automated workflow that includes ISDA & CSA agreement margin terms, computation of margin calls, and a wide range of other reports to improve control practices. FusionRisk Credit provides the flexibility to define limits for any combination of the following elements: counterparties, folders, countries, industries, ratings, currencies, instruments, users, positions and to define concentration limits. Reports can be designed to fit users exact needs including regulatory reports and activity dashboards. 4 Misys FusionRisk Credit Software overview

5 Credit Assessment and Monitoring Most banks use separate core banking, trade finance and loan origination/ processing systems. In order to check on the capacity to commit additional corporate transactions, a system is needed to help define workflow approval and monitor covenants and conditions. Providing a complete and consistent view of bank-wide limits and exposures at any given time, the Credit Assessment and Monitoring component streamlines access to limit information for credit decisions and analysis. It enables significant improvement in a financial institution s limit and risk monitoring capabilities leading to more effective control of corporate default risk. With FusionRisk Credit Assessment and Monitoring, banks can define and deploy an approval workflow that reflects the reality of their business and links document and personal information to any single approval process task. Basel III compliance FusionRisk Credit also supports Basel III economic capital calculation and reporting requirements in relation to credit risk. Multiple limit management techniques FusionRisk Credit provides the flexibility to define limits for any combination of the following elements: counterparty, folder, country, industry, rating, currency, instrument, user, positions and to define concentration limits. Reports can be designed to fit users exact needs including regulatory reports and activity dashboards. Core Banking System Support for credit line approval With FusionRisk Credit, users can actively check the space available in the balance sheet, gather all the necessary information related to a specific deal and then link this information to a specific task in the process. Users can also set up an approval workflow that matches their own organization. Depending on their authority as defined in the system, users can delete, reject, approve or query and simulate the effect of a specific deal before it is inserted and committed. Misys FusionRisk Credit Software overview 5

6 FusionRisk Credit Full coverage global assets Money Equity Derivatives market Fixed income FX Structured products Counterparty credit risk Limit management Credit risk mitigation Credit risk analytics FusionRisk Credit: Integration of Market VaR, counterparty exposure calculations and limits on any core banking platform and multiple front offices Comprehensive and dynamic management of credit line exposures FusionRisk Credit enables the automated import of new credit lines and facilities exposures. Its flexible workflow precisely supports existing approval processes and delivers answers on demand, with built-in approval escalation. Users can check total global credit exposure to a particular counterparty and perform batch import of repayments. A web services API enables connection to a wide range of banking systems. Advanced simulation capabilities for credit risk management A Potential Future Exposure (PFE) engine is linked to FusionRisk Credit and can be used to compute all metrics needed for the expected exposure to a counterparty e.g. limit impacts based on full Monte Carlo PFE profiles. This method can be mixed and matched with classical exposure calculation methods on an instrument-byinstrument basis, flexibly aggregating bank-wide exposures, for example PFE, Expected Potential Exposure (EPE) and Effective Expected Positive Exposure (EEPE). 6 Misys FusionRisk Credit Software overview

7 The FusionRisk Credit advantage Credit exposures need careful scrutiny. Misys FusionRisk Credit provides the insight and analysis required for effective management of corporate default risk. FusionRisk Credit specifically addresses credit exposure, allowing you to control risk and use capital more efficiently. The system is designed to monitor and manage credit limits and assure effective risk monitoring in real-time. From individual facilities to enterprise-wide exposure, FusionRisk Credit improves visibility and control of corporate default. Banks can reduce credit exposure and use capital more efficiently with features including collateral management, netting and guarantees. And by performing pre-deal checks, users can accurately reflect the cost of credit risk in their quotes before agreeing on trades. FusionRisk Credit provides a single system that analyses counterparty exposure for the whole banking operation, over any geographical scale, across multiple front-office applications. This ensures efficient, consistent and prudent use of firmwide counterparty limits. Misys FusionRisk Credit Software overview 7

8 Professional services and customer support An industry proven best practice approach that s the guiding principle of our professional services and support model. Misys clients benefit from our long track record of successful implementations. We received good technical support from Misys during the implementation and we are delighted that FusionRisk works exactly as expected. Fuad Mohamed Vice President Applications, Group IT, Emirates NBD Group Professional services Best-practice delivery The Misys delivery model is incorporated into our entire product lifecycle. We leverage best practice business processes in the design, development and quality assurance of all of our products. While we acknowledge that one size doesn t fit all in financial software, we know that a delivery approach that focuses on industry proven best practice process models helps our clients to save costs and benefit from the institutional knowledge Misys has developed across thousands of successful implementations. It means: Faster implementation: Repeatable delivery means projects are shorter and more predictable. Reduced TCO: Clear focus avoids unnecessary expenditure. Less risk: A standard, proven approach means many risks have already been mitigated. Centre of excellence Co-located with our development teams, the 200-strong Misys Service Delivery Centre ensures that we share best practice both internally and with partners. It enables us to refine implementations offsite before taking them back to the client. Customer support Misys clients benefit from the expert knowledge of resources worldwide whose primary function is to provide professional, scalable software support and maintenance. Deep domain expertise. Our technical and application support people have strong industry and product knowledge with continuous technical and industry training programs to ensure that Misys support teams can meet your evolving business needs. Scalable support model. As a Misys client, you can choose from a standard, professionalised support model or a specialised, premium support package depending on your needs. Because Misys support has a broad, global footprint that operates in all time zones and regions, Misys teams can scale to your requirements. Valuable advisory services. Our Systems Advisory Group (SAG) provides system reviews to help clients understand how to use their Misys systems more effectively and derive maximum value from their applications. SAG reviews have helped more than 80% of participating customers to identify ways to utilise their Misys software more effectively and use more system functionality. 8 Misys FusionRisk Credit Software overview

9 Proven, award-winning solutions FS Tech Awards 2013 Misys Global Risk wins the Risk management software of the year award in April 2013 Risk Technology Rankings 2012 Misys wins overall category and 7 others in the 2012 Risk Technology Rankings Structured Products Technology Rankings 2012 Misys wins Risk Management Collateral Management and 4 others in the Structured products 2012 Awards Risk Technology Rankings 2013 Misys wins enterprise-wide risk management category and seven others in the 2013 Risk Technology Rankings AsiaRisk Technology Rankings 2013 Misys wins overall category and 7 others in the Asia Risk Technology rankings 2013 AsiaRisk Technology Rankings 2012 Misys wins overall category and 7 others in the Asia Risk Technology rankings 2012

10 About Misys Misys is at the forefront of the financial software industry, providing the broadest portfolio of banking, capital markets, investment management and risk solutions available on the market. With more than 2,000 customers in 130 countries our team of domain experts, combined with our partner eco-system, have an unparalleled ability to address industry requirements at both a global and local level. We connect systems, collect data and create intelligent information to drive smarter business decisions. To learn more about how our Fusion software portfolio can deliver a holistic view of your operations, and help you to solve your most complex challenges, please visit misys.com and follow on Twitter. Corporate headquarters One Kingdom Street Paddington London W2 6B United Kingdom T Misys and the Misys globe mark are trade marks of the Misys group companies Misys. All rights reserved. 49 / 0614