financial risk management: integrated solutions to help financial institutions to address risk
Post on 13-Sep-2014
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IBM’s integrated risk management solutions enable financial institutions to: Understand market and credit risk exposure across multiple silos to make financial and risk decisions consistent with business objectives; Secure all transactions and forms of interaction; proactively prevent increasingly sophisticated internal and external prohibited activities and effectively manage detected events; Proactively manage potential risks from events impacting operations, processes and applications - both from internal & external and business & IT; Understand and manage compliance across a dynamic set of voluntary and mandatory requirements imposed by multiple regulatory bodies, across operating jurisdictions, at an optimal cost for value.TRANSCRIPT
© 2010 IBM Corporation
Integrated Risk Management
Paul Leonhirth – Integrated Risk Management Solutions, Banking & Financial MarketsAugust 2010
© 2010 IBM Corporation
Building a smarter planet
2
The reality of living in a globally integrated world is upon us
Sophistication has outstripped our ability to handle it
Together government and industry must balance stability and innovation
To thrive, firms must innovate their business models
Daily interactions must deliver on brand promises
Source: Tower Group
© 2010 IBM Corporation
Building a smarter planet
3
The world is connected: economically, socially and technically
Source: Tower Group
© 2010 IBM Corporation
Building a smarter planet
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The need for progress is clear
80% 93%
25 billion 10,000
Of financial services firms who say their governance, risk and compliance processes are still not integrated across their enterprise.
Of the 285 million electronic attacks in 2008 were focused on the finance sector, with well over half detected by third parties.
Global trading IT infrastructure are under extreme stress, handling billions of market data messages each day.
Estimated number of banking regulations in the US, with 4,000+ new regulations in the pipeline.
© 2010 IBM Corporation
Building a smarter planet
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Information Access Analytics
Integrity and Business Insight
Data Quality and Governance of
Information
Process Improvement,
Automation and Rationalization
Total Exposure Information
Credit Risk Reporting
Limits & Utilizations
Overdrafts & Netting
Collateral Management
Operational Risk Reporting
Stress Testing
Market Risk Reporting & Analytics
Trending and Predictive Capabilities
Top Risk Management Concerns and Challenges
Credit Risk
Market Risk ComplianceOperational
Risk
Quality & Completeness of Source Data
Linking Data to Common Client/Institution
Recognition of Risk Management Needs
Siloed Initiatives
Data Aggregation
Data Lineage
Key Risk Indicators
Credit Limit Approval Process
Credit Lending Process
New Business Acceptance
Client Investment Agreements
Multiple Risk Calculators
Duplicate Functional Systems
GL Reconciliations
© 2010 IBM Corporation
Building a smarter planet
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They will use transparency as a means to manage risk and as an engine for growth.
Financial institutions must do their part to restore trust and confidence in the global financial system
Success requires people, process and technology improvements that include new and smarter ways of
Measuring, modeling and applying risk-related information.
© 2010 IBM Corporation
Building a smarter planet
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Smart is:Having the right mix of control across all points of vulnerability
Smart is:Having a cross view of risk exposure
Smart is:Mitigating risk by elevating and leveraging IT
1
3
2Smart is:Automatically managing business processes
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Smart risk management is about collecting better information, using it more quickly and more effectively, and minimizing the need for human interaction in routine events
© 2010 IBM Corporation
Building a smarter planet
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Financial Risk1
Risk Insight and Optimization Solution for Financial Services
Credit Analytics
Scalable Architecture for Financial Reporting
These solutions increase the quality, transparency and timeliness of your risk information while proactively managing your exposure and liquidity. Recognize and predict complex causal relationships.
© 2010 IBM Corporation
Building a smarter planet
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2
Anti-Money Laundering Investigations, Alert Modeling and Analytics
Integrated Fraud and Financial Crimes Platform
Threat and Fraud Intelligence
Identity and Access Management Platform
These solutions help in real-time risk-monitoring, continually updating user profiles, associations and patterns of behavior.
Financial Crimes
© 2010 IBM Corporation
Building a smarter planet
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IT & Infrastructure Risk & Resilience, Data Encryption and Leakage Protection
Managed Identity, Business Continuity & Resiliency Services
Operational Risk Reporting Information Foundation
Enterprise Security Risk Monitoring, IT Security Infrastructure
These solutions continually track emerging and evolving threats to physical and IT infrastructure assets. Institute a holistic response to business and operational risks.
Operational & IT Risk
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© 2010 IBM Corporation
Building a smarter planet
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Compliance Information Lifecycle Management
Inventory of Obligations
Monitoring and Reporting
4These solutions help adopt a holistic approach to your obligations analysis—driving the control and oversight of your business processes by aligning IT strategy with business strategy.
Governance and Compliance
© 2010 IBM Corporation
Building a smarter planet
Building Capabilities for Smarter Banking: Integrated Risk Management
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Uni
que
valu
e re
aliz
ed
Use of Smarter Planet capabilities
Manage Data1
Analyze Patterns2
Optimize Outcomes3
Integrate siloed data to improve positions and regulatory reporting
Monetize data to achieve performance goals and improve business resilience
Manage risk appetite Data for compliance
Cost containmentLoss mitigation capabilityReduction in fraud losses
End-to-end visibilityCustomer retentionBusiness resilience
Enabled by the IBM Banking Industry Framework
Leverage insights to increase visibility of both threats and opportunities
© 2010 IBM Corporation
Building a smarter planet
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Enables you to holistically manage risk across the enterprise with an integrated set of software and service assets developed through multiple projects within four core risk management domains.
Banking Industry Framework for Integrated Risk Management
Key Benefits:
Faster deployment
Lower Risk
Support for adoption of open & industry standards
Offer choice of business applications from IBM & its partners
Simplified enterprise architecture
© 2010 IBM Corporation
Building a smarter planet
Integrated Risk Management — Solution Focus Areas
FinancialCrimes
Governance and
Compliance
Financial Risk
Operational and IT risk
IntegrationOptimization
AnalyticsCollaboration
SecurityResiliency
WAS, BPM, ILOG BRMS
ITSM, TSIEM, TCIM
AppScan, Compliance IoO
ISAS Predictive Analytics
Operational and IT Risk
Financial Risk
Governance and
Compliance
Financial Crimes
IntegrationOptimization
AnalyticsCollaboration
SecurityResiliency
Integrated Risk Management
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Automate Resolving False Positives and Alert Triage
Integrated Fraud and Financial Crimes platforms
AML/Fraud Operational Effectiveness and Risk Mgmt
Customer Identification and KYC, Customer Risk Ratings
Entity Management / ID Relationship Resolution
Investigative Case Management with Web 2.0
Comprehensive Security Risk & Control Management
Trusted Identity Management – Identity & Access
IT Service Management – Asset, Configuration, Incident, Change, Release Management (ITSM, CRDB, ITIL)
Proactive, DB activity/control monitoring, event correlation, analytics and IT Risk Mitigation techniques
Application Security, IT Risk, Integrity & Privacy
Compliance Information Lifecycle Management
Compliance Inventory of Obligations for Corporate Governance and Internal Controls
Sales and Market Conduct Compliance
Regulatory Compliance, BI and Reporting
Risk Data Management for Credit, Market, Liquidity Risk
Risk Insight for Banking Risk and Performance
Real Time Risk, BI and Reporting Solutions
Risk Analytics, Risk Optimization, Analytics and Insight
Quantitative Risk Modeling and Scenario Analysis
© 2010 IBM Corporation
Building a smarter planet
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We’ve only just begun to uncover what is possible on a smarter planet.
The world will continue to become smaller, flatter and smarter. We are moving into the age of the globally integrated and intelligent economy, society and planet.
There’s no better time to start building a smarter financial system—focused on restoring public and governmental trust and breathing new life into the global economy.
Let’s work together to drive real progress in our world.For more information, visit ibm.com/banking/risk