Enterprise Risk Management



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Enterprise Risk Management Enterprise Risk Management

Understand and manage your enterprise risk to strike the optimal dynamic balance between minimizing exposures and maximizing opportunities. Today s Challenges Increasingly, you are expected to evaluate risk in a holistic fashion that integrates counterparty, portfolio and regulatory exposures through the entire risk life cycle. Meanwhile, regulation keeps getting stricter, with heightened focus on stress testing as well as counterparty, portfolio and liquidity risk. The challenge is not just to meet or exceed the new regulatory hurdles, but to realize value from your investment in risk management systems. Managing risk across the enterprise comprehensively and with foresight demands new and better tools. The Risk Manager s Evolving Role Report risks Actively analyze and manage risks Understand risks Calculate return on risks Mitigate risks Optimize risks and rewards Analyze risks independently Conduct integrated risk analysis Focus on financial risks Focus on all risks Enterprise Risk Management solutions from Moody s Analytics combine best-inclass quantitative credit and portfolio analysis with regulatory and balance sheet risk management software to maximize your effectiveness and impact.

Enterprise Risk Management BEST IN CLASS TOOLS FOR UNDERSTANDING YOUR BEST OPTIONS Enterprise Risk Management solutions from Moody s Analytics deliver awardwinning software and transparent models backed by extensive support. Credit Assessment and Origination Gain a comprehensive and consistent view of your risk by combining financial spreading, credit analysis and robust data storage in one flexible and secure enterprise platform. Leverage Moody s Analytics world-renowned KMV Expected Default Frequency credit measures, which are calibrated on one of the most complete proprietary datasets in the market. Together, these tools give you the fundamental elements to dynamically build sophisticated internal rating models and scorecards. Our risk management services support team can help you customize, implement and deploy these components effectively in the context of a comprehensive risk management strategy. You can also enhance the loan origination process with automated workflows that allow you to analyze and report on your corporate loan portfolio and the impact of a deal on portfolio risk and performance metrics, as well as consistently enforce specified limits. RiskAnalyst summarizes counterparty internal rating information as well as the expected loss at the transaction level, allowing you to quickly analyze the probability of default for firms of all sizes, across a wide-range of industries. More than 2,000 leading commercial and investment banks, insurance companies, money management firms and corporations in over 80 countries use our products and services, including most of the 100 largest financial institutions in the world.

Portfolio Management Rapidly and accurately measure and benchmark portfolio-level credit risk and return across your entire organization. Our risk and correlation data and analytics used by the world s leading financial institutions allow you to calculate the economic capital critical to Basel II and III, compare portfolio risks and identify specific actions to improve performance. Scenario analysis tools allow you to stress test a portfolio and perform what-if analyses. In addition, you can monitor exposure by linking counterparties, facilities and risk mitigants to effectively manage limits and collateral. Consolidating all branches, subsidiaries and business lines creates the ability to drill down from aggregated data on overall positions to the underlying detail. ENTERPRISE SOFTWARE TO COMPUTE ENTERPRISE RISK Leverage an integrated platform, complete with audit, security, datamart, grid computing, Monte Carlo simulations and more. Our solutions use the same information sources and may be used individually or in combination to fit your specific needs. Regulatory and Compliance Meet and exceed Basel I, II and III or Solvency II requirements with our integrated risk capital assessment systems already in use by over 40 supervisors. Our solutions address credit risk, market risk and operational risk, generating all required regulatory reports out of the box. Our credit and market risk solutions incorporate national discretion options covering most local regulation requirements in Europe, North America, Latin America, Middle East and Asia-Pacific. Our open architecture solutions integrate into your existing information technology infrastructure and provide a complete regulatory and economic capital management system. You get the performance you need to meet tight deadlines, with the flexibility to adapt to evolving regulatory regimes. Using our risk management support services, you can develop the right strategies to deploy these tools consistently and effectively. Our team works with regulators around the world and has developed risk management policies, processes and tools that can help you meet requirements and manage compliance. Balance Sheet Management Analyze your exposure to interest rate, liquidity, foreign exchange and inflation risk with indicators such as gap analysis and net economic value sensitivity. Perform calculations over the whole or any part of your balance sheet structure, based on current or simulated data. Forecast any item on and off the balance sheet and calculate cash-flows all the way to maturity of contract, while rapidly creating all required regulatory reports for all assets and liabilities across the world. Test the impact of stressors on your liquidity position and develop an approach that helps you use liquidity as a strategic tool to manage and improve the performance of your business. Moody s Analytics voted #1 in Basel II Compliance, Regulatory Risk Capital Calculation and Regulatory Reporting.

ESSENTIAL INSIGHT SERVING GLOBAL FINANCIAL MARKETS Moody s Analytics gives you the tools, insight and solutions that allow you to assess and manage enterprise risk, make informed decisions and adapt your strategies dynamically as circumstances evolve and opportunities arise. OUR APPROACH Our enterprise risk management approach goes beyond standard credit, market and operational risk and delivers a solution for the entire risk life cycle, from measuring and pricing for risk in loan origination, to portfolio and regulatory risk management and reporting, to managing balance sheet and liquidity risk. Our solution allows organizations to tie all credit exposures to an obligor, as well as to the entire portfolio, providing a consistent view of risk from origination to regulatory calculation and reporting to portfolio analysis. Credit Assessment & Origination» Probability of Default & Loss Given Default» Internal Rating Models» Spreading» Origination Workflow» Limits Management Management Reporting & Stress Testing Portfolio Management» Portfolio Management & Economic Capital» Exposure & Collateral Monitoring» Performance Mgmt Regulatory & Compliance» Basel II, Basel III» Solvency II» Credit, Market and Operational Risk Balance Sheet Management» Asset & Liability Management» Liquidity Risk» Hedge Accounting Benchmarking Data & Professional Services Risk Data Warehouse About Moody s Analytics Our expertise Management Reporting & Stress Testing Moody s Analytics can provide customized advisory services that use the full breadth of Moody s data, research, analytic tools, software and expertise to address all types of risk management needs. In addition to providing customized software implementation and extensive software support services, our team can draw on their experience as former Credit Assessment Portfolio Regulatory Balance Sheet analysts, & economists, Origination practitioners Management and regulators & to Compliance understand your business Management and the challenges you face. Our team offers support that ranges from developing end-to-end counterparty risk assessment solutions to targeted assistance with your most complex risk and financial management challenges. Benchmarking Data & Professional Services Risk Data Warehouse Moody s Analytics helps capital markets and credit risk management professionals worldwide respond to an evolving marketplace with confidence. The company offers unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management. By providing leading-edge software, advisory services, and research, including the proprietary analysis of Moody s Investors Service, Moody s Analytics integrates and customizes its offerings to address specific business challenges.

CONTACT US For CONTACT further US information on Moody s ratings and research through Visit us at Moody s moodysanalytics.com Analytics, contact or us contact at a location us a below: location below: AMERICAS +1.212.553.1653 +1.212.553.1658 clientservices@moodys.com EMEA +44.20.7772.5454 clientservices.emea@moodys.com ASIA Asia-Pacific (excluding Japan) +852.3551.3077 +85.2.3551.3077 mdyasiainfo@moodys.com clientservices.asia@moodys.com JAPAN +81.3.5408.4100 clientservices.japan@moodys.com Copyright 2009, 2010, Moody s Analytics, Inc. All Rights Reserved. SP12756/101122/ERM_001