Misys FusionRisk Solution overview Grow with risk intelligence Act with greater insight
Enabling a risk-aware business strategy How do you make sure risk adds value to your business?
Misys FusionRisk makes risk-minded thinking a reality 1 2 3 For Chief Risk Officers, a comprehensive, top-down and enterprise-wide view of risk is essential yet risk systems are largely unable to create the required perspective. Better risk identification is no longer just about disaster prevention it has become a mission critical enabler for maintaining a sustainable long-term strategy. Financial institutions that can aggregate and connect essential risk data can use this insight to compete more effectively. What is preventing banks from improving risk management capabilities? Fragmentation of systems/it complexity Lack of a single aggregated view of risk 66.7 % 58.3 % Source: Celent research Misys FusionRisk Solution overview 3
a more comprehen The solution has enabled us to draw a full circle between ALM, cost management, our commercial strategy and credit risk management. Jean-Christophe Plossignac Cost Management, Financial Department, Banque Socredo Misys FusionRisk takes inputs from multiple systems so risk managers can analyse risks and limits in one place. An integrated risk approach enables to evolving regulat 4 Misys FusionRisk Solution overview
Misys FusionRisk provides responsive risk dashbards to ensure risk transparency at any level of the organization. Pravat Dash Head of Market Risk Management, Axis BankBanque Socredo Misys FusionRisk offers a rapid route to compliance, with a unique solution that combines credit, market and liquidity risk and supports assessment of regulatory capital, calculation of liquidity coverage ratios and the conduct of stress tests. management banks to respond ions and produce sive view of risk Misys FusionRisk Solution overview 5
Gains have been impressive. As 30% productivity improvement in reporting isn t even the most impressive gain. The greatest is in that we can now do analysis we couldn t do before, enhancing the contribution of ALM to the bank s business. ALM Operational Director 6 Misys FusionRisk Solution overview
Success stories Better operational oversight and a 30% reduction in reporting time Selecting FusionRisk Balance Sheet Management and Regulation, a French bank discovers dramatic productivity benefits from its rapid integration, seamless processes and powerful analytical features. When the bank decided its existing Asset Liability Management (ALM) system approached the end of its life, it chose an advanced, scalable solution to cater for its growing business. With a legacy system unable to cope with the large volume of data generated by its growing business, this regional leader needed to aggregate information before analysis could take place. Introducing FusionRisk helped store and manage large volumes of data down to contract level, the bank can now drill down into far more detailed information to investigate any aspect of its business, at any level of granularity required.
The Misys approach to risk Risk management is all about insight. This is the driving force behind the Misys FusionRisk solution. We understand that connecting knowledge from every part of a financial institution is a strategic risk management imperative. FusionRisk takes a holistic, top down approach that provides the complete picture of exposures that regulators, shareholders and boards demand. It leverages existing IT investments at a time when banks need to focus on cost control and productivity gains. Misys FusionRisk empowers financial institutions to address two interconnected goals: to meet short-term regulatory demands and to embed risk in the business from day-to-day operational oversight to long-term strategic business planning. 8 Misys FusionRisk Solution overview
Misys FusionRisk comprises five modules that can be combined to suit each financial organisations s specific needs. FusionRisk gives you the single, global risk view you need. It s designed to be easy for any organisation to adopt. FusionRisk FusionRisk Insight FusionCapital FusionBanking Loan IQ Regulation Basel capital Regulatory reporting National discretions Banking book Balance Sheet Management Asset liability management Liquidity management Fund transfer pricing Credit Credit limits Credit assessment and monitoring Trading book Advanced Measures Market risk (VaR) Advanced credit (PFE/CVA) FusionFabric Connect FusionBanking Essence FusionInvest Non-Misys trading systems Non-Misys banking systems Data source Shared components Scenario generation, pricing and calibration, real-time reporting, data management, generic limits, high performance risk analytics and task-oriented workflows Fusion solutions can fit seamlessly into your existing infrastructure, or create a brand new platform that will start delivering value within months. And because FusionRisk is flexible and agile, you remain perfectly placed to overcome changing market conditions and new challenges. Misys FusionRisk Solution overview 9
Misys FusionRisk Misys FusionRisk comprises five modules that can be combined to suit each financial organisations s specific needs. FusionRisk Insight provides centralised, strategic risk intelligence and optimisation tools across the enterprise. From here, risk across the organisation can be understood and analysed. In addition, risk managers can drive the risk appetite and optimise the global risk exposures to match the risk strategy of their financial institution. FusionRisk Advanced Measures helps capital market institutions to make risk-based business decisions in the front office and gain a competitive edge by actively managing the shortterm sensitivities and long-term vulnerabilities of Potential Future Exposure (PFE), Credit Value Adjustment (CVA) and market risk. 10 Misys FusionRisk Solution overview
The FusionRisk advantage Improved regulatory compliance and reporting: FusionRisk helps organisations become more flexible and detailed in measurement and reporting so they can remain compliant even as regulations change. Act on risk: FusionRisk is allowing banks to embed risk awareness top down in daily tasks with agile risk information. CRO s can monitor risk across the bank more effectively and business lines can execute faster on new strategies. Control risk appetite and sharpen decision-making: FusionRisk is helping banks to optimise their capital allocations by offering comprehensive measures to gauge risk, guide capital allocation and ensures they are creating long term value. Complete risk information in one place: By taking inputs from multiple front-office and other banking systems, FusionRisk enables a unique and comprehensive view of risk across the trading and banking books. Cost effective strategy: FusionRisk can gather data across different risk engines and sources, which are then aggregated into one place for easy analysis and sharing. Proven technology: FusionRisk offers high performance risk analytics to cope with the flexibility required to risk measure all essential risk data in a bank. High parallelisation of data computation is now available at very low cost and provides multiple possibilities of intraday re-runs, including real-time pre-deal computations. FusionRisk Credit supports global exposure and counterparty management as well as making the complex workflow approvals for all credit risk transactions simple and efficient. It also reduces the operational risks by systematising and automating the credit risk management rules, processes and approvals. It also provides straight-through processing (STP) capabilities to assess the most standard and simple credit files, allowing banks to focus most of their time and resources to analyse the most profitable transactions. FusionRisk Balance Sheet Management dynamically manages the risk exposures of assets and liabilities. By providing dynamic simulation capabilities, it allows banks to understand risk-return profiles of all banking activities and then take risk-based decisions to optimise the financial margin in the chosen risk appetite framework. FusionRisk Regulation provides continuing scrutiny of the determinants of regulatory reporting figures. From capital adequacy ratios in different jurisdictions, to credit, market, operational, liquidity and concentration risks, this module helps financial institutions stay compliant with changing regulatory reporting requirements. Misys FusionRisk Solution overview 11
Success stories A clear perspective on risk Post-merger, a large retail and corporate banking group achieved the holistic, real-time picture of risk it needs. When two middle-eastern banks merged to create a regional leader, their integration meant the new bank inherited several different front-office systems for their Capital Markets division. The merged organisation found it difficult to analyse information in real time, particularly in the light of growing demands from the board and regulators. Seeking better control of risk data across platforms and faster reporting and reconciliation, the bank implemented the Market and Credit Risk components of Misys FusionRisk With the new solution, the bank can aggregate risk data at any level, from individual traders up to group-level reporting. Now it can generate intraday and on-demand views of all its trading portfolios and view its entire market risk exposure in real time. 12 Misys FusionRisk Solution overview
Misys solution also enables us to deliver market risk reports to our board and senior management much more quickly than ever before, giving them rapid access to the information they need to make the best business decisions. Head of Group Market Risk Misys FusionRisk Solution overview 13
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 1000+ 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. 14 Misys FusionRisk Solution overview
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
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 us @MisysFS on Twitter. Corporate headquarters One Kingdom Street Paddington London W2 6B United Kingdom T +44 20 3320 5000 Misys and the Misys globe mark are trade marks of the Misys group companies. 2014 Misys. All rights reserved. 36 / 0514