STATISTICA Solutions for Financial Risk Management Management and Validated Compliance Solutions for the Banking Industry (Basel II)

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STATISTICA Solutions for Financial Risk Management Management and Validated Compliance Solutions for the Banking Industry (Basel II) With the New Basel Capital Accord of 2001 (BASEL II) the banking industry is faced with new regulatory challenges, as well as opportunities to fine tune the measurement and management of operational risk. The three pillars of BASEL II are measurement of minimum capital requirements, supervisory review, and market discipline. To achieve BASEL II compliance requires that financial institutions build a secure and robust data analysis and reporting system that can be validated and controlled (e.g., version control of reports), and provides role-based security (so that only certain individuals can create data queries, report templates, and so on) and audit trails for review by regulatory agencies. The STATISTICA Enterprise Analytics platform provides the ideal solution that will allow financial institutions to move forward with confidence: The STATISTICA solution for general data analysis, modeling, and reporting is based on proven and mature technologies that are currently deployed in regulated industries worldwide. Here is what sets the STATISTICA solution apart from other "spot-solutions" or proprietary and expensive data warehouse solutions: STATISTICA provides a unique and complete combination of analytic components and computational engines, robust and secure, and Web-enabled, role-based, client-server architecture, along with complete audit trails of users and uses, as well as histories of specific analytic reports. For example: Specific roles are assigned to query administrators, who are permitted to create and modify data queries, while analysts are permitted to create analytic templates to analyze the data returned by the queries; both queries and analytic templates are versioned, and changes can be reviewed via audit trails to guarantee the integrity and accuracy of the system.

STATISTICA provides the most complete graphics engine available in any application, with thousands of graphics functions to aid in risk measurement, risk modeling, Monte Carlo and other simulation methods, back-testing, root cause analysis, and informative summary reporting. For example: Practically all graphical tools required for risk modeling, stress-testing, back-testing, etc. are available in STATISTICA

STATISTICA contains the most complete collection of modeling tools in a single platform, from Linear and Generalized Linear Models, to advanced modeling using effective cutting-edge machine learning algorithms (including neural networks, stochastic gradient boosting, support vector machines, and many others). STATISTICA is a mature analytics platform with algorithms that can be demonstrated to be more accurate and robust than those found in other software. For examples, please review the STATISTICA precision benchmarks.

STATISTICA also contains all the necessary distribution fitting methods, CDF and PDF functions, auto-correlation functions, matrix functions (PCA, singular value decomposition, etc.), and time series methods, to name only a few of the thousands of functions available in the system. For example: STATISTICA provides interactive desktop analytics and graphics tools, powerful and effective methods to directly process data from database queries, Web-based interactive analytics and graphics, role-based enterprise-wide guided analytics (templates and reports), and a powerful library with more than 11,000 functions accessible from Visual Basic or other scripting languages.

The STATISTICA library contains all relevant probability functions and the highest-quality random number generators to estimate more precisely VAR (Value At Risk) via simulation or perform stress testing and scenario analysis. For example: STATISTICA's random number generator is one of only a few that pass the DIEHARD suite of tests for the quality of random numbers. The STATISTICA platform has been refined for more than a decade to provide secure validated analytics in environments regulated by various government agencies; it is a mature solution built on years of experience, and is currently in use worldwide in numerous mission-critical applications. For example: Review STATISTICA success stories in the FDA regulated industries to support validated and secure analytical reporting with audit trails and full version control. STATISTICA supports role-based security, audit-trails, event-logging, etc. Not only is the usage of the system logged, but even database queries and analytic templates can be controlled and versioned (audited) to support implementations of the Advanced Internal Ratings-Based approach to Basel II compliance. STATISTICA is built entirely from industry-standard components and programming tools; this means that you can access existing databases in virtually all industry formats, write macros and design analytic templates with standard macro language tools such as VB or C#, and generate reports as Web pages, Microsoft Office documents, PDF documents, etc. When you use STATISTICA you can fully leverage your existing data repositories and easily allow your in-house experts to build sophisticated proprietary analytic modeling tools; you do not need to build a new data warehouse or "write programs" in proprietary scripting languages!

The STATISTICA Web-enabled client-server architecture is scalable to support hundreds or thousands of users and even the most demanding computational tasks through effective and proven load-balancing, support for parallel processing on multiprocessor servers, and other methods to ensure performance and responsiveness. For examples, please review the Web-enabled client-server architecture. Finally, STATISTICA is a cost-effective solution, not only with respect to initial acquisition and installation cost, but also with respect to total cost of ownership. Support and training are available from the experienced staff in StatSoft offices worldwide, with multiple locations throughout Europe, Asia, and elsewhere. Contact StatSoft for details and a demonstration of this unique analytics platform designed specifically to support mission critical applications in regulated industries.