Risk Management
Bringing Agility and Accountability to Risk Management:
Quality data drives effective risk strategy
Capitalizing on opportunities while meeting regulatory demands
Financial institutions are caught between a rock and a hard place. You need to seize new opportunities as they arise while remaining accountable to ever more stringent regulatory demands. Added to that, capital is an increasingly scarce commodity. The key is an integrated approach to data that links disparate silos of information into one manageable stream that feeds quality data into your risk engines.
Typically and understandably, investments have been made primarily in the front office to support the speedier trading of new product types. But when this is done at the expense of back office processing and middle office reporting capabilities and when the necessary supporting infrastructure lags behind, a dangerous situation is created. Lack of transparency, processing backlogs and inadequate reporting can be the results.
By integrating your data, your institution is better prepared to meet all levels of risk :
Market risk
Assessing your real exposure to price volatility depends on true insight into the instruments underlying complex assets and portfolios. A strong, integrated data solution pulls all the pricing pieces together for you and shows you where your prices ad risk factors came from, allowing for independent verification.
Credit risk
To "know your customer" means knowing their counterparties and the links between them as well. The effects of adverse events quickly ripple through counterparty relationships and incomplete insight into both direct and indirect exposure is a requirement institutions can ill afford. Quality data sourcing can expose otherwise obscure credit information.
Operational risk
System weaknesses can lead to costly delays and missetlements. Worse, it can compromise legal and regulatory compliance. Business lines have often operated as black boxes complicating consolidation of exposure. Back and middle office capabilities have struggled to keep up with front office product proliferation. Effective data management produces transparency and encourages confidence.
Regulatory reporting
Basel II and other regulations have called for greater precision in VaR and other reserve calculations incorporating a wider range of risk types and requiring an increasingly broad set of internal and external information. Furthermore, with capital in short supply, you want to deploy it as effectively as possible.
Asset Control: An authentic financial services approach to data
Asset Control is data management with a difference: since our founding in 1991, we have focused exclusively on financial data needs. Today, Asset Control offers sophisticated data management tools that satisfy front office demands for rapid information access while providing a robust data infrastructure to simplify back office management. Easy and comprehensive access to high quality information boosts productivity and allows for a shift from process execution to process management.
Our deep international experience and expertise allows us to craft solutions that meet the challenges of the most data-intensive financial transactions. As an alternative to fixed data services or spreadsheet work-arounds, our products allow you to:
Think big by thinking small:
Many solutions providers demand a labor and resource intensive investment up front. Asset Control solutions are deliberately modular – you can begin by tackling the data piece most important to you. As your information needs grow your data structure can grow with them.
Make accurate valuations:
Asset Control leverages advanced data models that expose and integrate the individual security values underlying today's complex instruments. Now your master data can link issuers, bonds, securities, swaps and more into a complete and accurate picture of asset value allowing you to regain and retain control over the information you need in your decision making
Ensure transparency:
It’s not just the regulators – your clients, counterparties and shareholders insist on clarity as well. In an environment where you're obligated to demonstrate your integrity, Asset Control solutions maintain an audit trail that brings transparency to your pricing and valuation policies.
Add new sources on the fly:
Asset Control integrates all data streams – including market data, credit data, security master, corporate actions, issuer data - into one consistent format under your command. Need a new source? No problem. Our adaptors will have you up and running immediately.
Make changes without pain:
As you collect data in new asset classes or incorporate new sources, you may need new data fields and identifiers. Asset Control allows you to make the adjustments you need without new coding or the services of a database developer.
Get updates fast:
Asset Control continually monitors source changes and delivers updates to your team automatically – no disruptions, no hassles.
The next step to gaining greater control
Accurate, actionable data is the foundation for responsible risk management. Be sure you stand on solid ground. Talk to an Asset Control Investment Data Expert to address your needs and identify the most profitable place to begin.
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