Kondor global risK release 3.6TinTegraTed crediT and marKeT risK managemenT

CONTROL

FORECAST

UNDERSTAND

Financial institutions are facing tougher regulations around credit and market risk with tight deadlines for compliance. but complying with regulations is just the minimum. increasingly boards are placing pressure on management teams to improve transparency, introduce best practice and report risk on an intra-day and in some cases real-time basis.

However, delivering a consistent and timely view of global exposure for the different aspects of risk across the business can be a challenge. This is particularly true where financial institutions operate multiple trading systems.

banks are being pushed to anticipate and plan more effectively, so comprehensive stress testing has become a top priority. at the same time risk systems are struggling to handle increasing transaction volumes.

system rationalization is still on the agenda, with operational cost savings as one of the key drivers.

NEW OPPORTUNITIES, NEW CHALLENGES

‘‘Increasingly financial institutions are looking at ways to improve transparency, introduce best practice and report risk intra-day and in real-time.”

Key ChallengesGreater system agility and speedbusinesses are demanding that iT responds more quickly to develop new capabilities and solutions in response to changing market conditions and regulations.

Joined-up view over credit riskPost crisis, there is a need for banks to have a joined-up view over credit risk across their business. Having a number of different systems makes this a potentially costly problem to solve.

Rapid response to external eventsFinancial institutions have to anticipate and be ready to respond more rapidly to external events, such as the downgrading of a counterparty.

Proactive risk managementrisk managers spend up to 80% of their time gathering and collating data, leaving little time for proactive risk management.

360 view over market riskit’s no longer acceptable for financial institutions to be exposed to unknown sources of market risk.

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Kondor global risk 3.6T

Financial institutions are facing tightened regulations around credit and market risk management. At the same time, senior managers are showing a renewed interest in risk management and are asking increasingly challenging and complex questions. There is huge pressure on risk reporting functions to deliver results while simultaneously becoming more flexible and responsive. However, being able to aggregate and compute risks consistently, flexibly, and on demand is a complex challenge.

Kondor Global Risk (KGR) has been designed to address these challenges. It provides a single, integrated product for the management of market risk, credit risk and limits in real-time.

built with an open and flexible data model, Kgr is designed to operate on top of multiple front office systems, with deep two-way integration – from checking trade compliance in real-time, directly from a front office screen, to sharing the front office analytical libraries.

The latest release includes a groundbreaking risk dashboard that enables risk managers to visualize and understand information quickly. Kgr doesn’t just alert users to risk – it immediately explains from where the risks originate so that action can be taken to address them. Kondor global risk allows financial institutions to make proactive business decisions based on genuine risk intelligence.

CONTROL, UNDERSTAND, FORECAST

Why choose KGR?Intuitive and dynamic risk dashboardThe dashboard in Kgr, with its powerful analysis screens, provides a new, intuitive way to visualize information and understand its meaning quickly. an advanced data aggregation engine allows users to look at the information from different perspectives and drill-down on areas of interest.

Use front-office analytical libraries in risk reportingUniquely, Kgr ensures data consistency by using the actual analytical libraries developed and maintained by the front office.

Credit and Market Risk engines in one productKgr delivers real-time access to all risk factors, whether credit or market based, with the most sophisticated analysis tools.

Sophisticated and flexible stress testingKgr includes an advanced stress testing engine that allows customers to model exposures to different historical, event driven and client specific scenarios over any time period.

Highly flexible limits rulesKgr supports sophisticated limits rules that allow users to structure any kind of limit, internal business hierarchy, and counterparty hierarchy. it also allows risk managers to re-allocate limits on the fly.

Powerful data aggregation and analysis enginesKgr offers unrivalled power and flexibility to build and run the most complex scenarios; users can update data and re-run only the relevant parts of a report. These elements are then automatically rolled up into the overall result without the need for time consuming recalculations.

Open, flexible and generic data modelour open and generic data model gives customers the flexibility to model any exposure using their own measures of risk. it also allows them to simulate any banking activity and to fully explore counterparty risks.

Kondor Global Risk 3.6T

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PRODUCT MODULES PROPOSITIONS

EXPOSURE/ LIMIT

MANAGEMENTCREDIT RISK

KONDOR GLOBAL

RISK

BASEL IILIMIT MANAGEMENT

MONTE CARLO VAR

CREDIT LINE MANAGEMENT

IMA MARKET RISKPFE

CVAR

MARKETRISK

KONDOR GLObAL RISKValUe ProPosiTion oVerView

Kondor Global Risk 3.6T

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Get a complete view over credit risk across the businessKgr provides open, flexible web service aPis that can take inputs from multiple front office systems to  centralize the assessment of credit exposures. coupled with our comprehensive credit lines management functionality, this allows customers to manage overall credit exposures across their trading and banking books.

Address the growing need for more sophisticated limit managementThanks to our asset class agnostic data model, data from any banking system can be centralized in Kgr. our limits rule engine allows customers to structure any kind of limit and internal business hierarchy or counterparty hierarchy, and allows the dynamic reallocation of limits on the fly. This means users can implement limit management to suit the level of complexity and flexibility their business requires.

Anticipate and respond rapidly as external factors changeThe advanced stress testing features in Kgr enable risk managers to simulate a downgrade of a counterparty or a shift in risk factors, and rapidly assess the true exposure of the bank.

Respond more rapidly to the needs of the business with a single integrated productKgr has the range of functionality across market risk, credit risk and limits management, and the proven flexibility, to replace existing in-house developed products – more than 200 customers already use Kgr.

Kgr has been designed to be straightforward to implement. our team of experts work with customers to deliver the exact solution they require in months, not years.

Kondor Global Risk 3.6T

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benefit from our knowledge of best practice in emerging marketsKgr is designed to meet the most sophisticated and complex of customer and local market demands.

our in-house team of 360 certified professionals has worked with market leading banks in all areas of the globe. our industry experts are based in 48 countries, including india, china, africa, and the middle east, allowing customers to take advantage of our knowledge of best practice in both developed and emerging markets.

Spend more time analyzing the data and proactively supporting the businesswith Kgr, users can update and correct data and then re-run just the part of the analysis that needs correcting, and the result rolls up into the overall risk report automatically. so users can spend more time analyzing the data, keeping an eye on what traders are doing, and proactively investigating the real drivers of risk.

Drill-down through the figures across the business to get the full pictureKgr holds base data within the product and retrieves, stores and aggregates this data in a highly efficient way. dynamic dashboards allow users to drill down through the figures right across the business, at lightning speed.

Put risk information at the fingertips of tradersduring deal capture, traders can check compliance with all the business’ risk management rules in real-time. This ensures that they have the necessary information at hand to take advantage of opportunities as they arise.

Kondor Global Risk 3.6T

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CORE COmPONENTS

REAL-TImE DATA AGGREGATION PLATFORm

designed from the outset to accept and distribute data in real-time, Kgr acquires, cleanses and stores the total range of trade, market and counterparty data required for the analysis of market and credit risk.

ASSET CLASS AGNOSTIC DATA mODEL

built from the ground up to be asset class agnostic, Kgr handles any instrument type and enables the rapid on-boarding of new asset classes.

INTEGRATION API The comprehensive product aPi supports deep two-way integration with in-house and third-party trading and banking systems. Kgr is fully integrated with Kondor+.

DISTRIbUTED ARCHITECTURE Kgr is built on a modular, distributed architecture to support multi-site, global implementations.

CREDIT RISK AND LImIT mANAGEmENT COmPONENTS

CREDIT RISK ANALySIS ENGINE The highly efficient scenario analysis and stress testing engine delivers notional, replacement cost, PFe, linear and bis methodologies, supports credit migration techniques and meets basel iii economic capital calculation and reporting requirements.

LImITS RULES ENGINE a powerful rules builder to structure virtually any type of limit (including concentration limits), using any combination of internal business hierarchy, counterparty hierarchy, country, industry, rating, currency, instrument, user, and positions.

API FOR REAL-TImE LImIT mANAGEmENT IN THE FRONT OFFICE

The Kgr aPi supports deep, two-way integration with front office systems. simulation functions allow users to examine the effects of trades before they are placed, request on-line authorizations to exceed a limit, with the credit manager then approving or rejecting the request.

REPORTING extensive reporting capabilities provide standard, custom and what-if reports. in addition ‘excess management’ functionality allows risk managers to quickly drill down to identify the causes of a limit breach.

COLLATERAL mANAGEmENT Kgr provides enterprise-wide collateral management using an automated workflow that includes isda & csa agreement margin terms, computation of margin calls, and a wide range of other reports for better control practices.

CREDIT LINE mANAGEmENT Kgr enables comprehensive and dynamic management of credit lines.

ADvANCED SImULATION CREDIT RISK mANAGEmENT

The Future exposure engine provides a simulation tool to better estimate the potential future exposure of the bank by computing monte carlo simulated market rates for risk factors. a counterparty exposure report displays exposures for a given counterparty versus time for a given PFe profile, in gross and net terms.

CREDIT vALUE AT RISK The credit Var module provides advanced monte carlo simulation to model the impact of counterparty default and ratings upgrades/downgrades on a portfolio. a black-scholes-merton default model and a credit metrics methodology based model are included.

mARKET RISK mANAGEmENT COmPONENTS

DyNAmIC RISK DASHbOARD AND vISUALIzATION TOOLS

intuitive and flexible analysis screens provide a real-time view of market risks, with lightning fast slice-and-dice and drill-through to the underlying information. Kgr incorporates a number of intuitive dashboards include Var and Present Value explainers, Var reporting, back Testing and stress Testing.

INTEGRATION API DEDICATED TO mARKET RISK

Kgr provides a flexible aPi to enable rapid integration with third party and in-house developed libraries used in the front office.

mARKET RISK ANALySIS ENGINE

The highly efficient scenario analysis and stress testing engine provides historical and monte carlo-based scenario generation and Var calculation. a market data repository and flexible scenario generation tools support all calculations and testing in order to respond to regulator constraints. all analysis can be stored for future reuse or reference using Kgr’s automatic archiving functionality.

RATE mANAGEmENT mODULE Kgr provides market data storage for the management of wide range of rate types and risk factors from any data source. Visualization and control functionality delivers capabilities including time series display, gap Filling for missing data and rate exceptions to manage inconsistencies of market data.

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NUmbER ONE RISK mANAGEmENT TECHNOLOGy PROvIDER

ASIA RISK TECHNOLOGY RANKINGS 2011

number one overall risk managementnumber one Trading system – equitiesnumber one Trading system – Foreign exchangenumber one Trading system – interest ratesnumber one derivatives pricing and risk analytics – equitiesnumber one derivatives pricing and risk analytics – interest ratesnumber one derivatives pricing and risk analytics – Hybridsnumber one support services – implementation effi ciency

bEST TRADING PLATFORm bACK OFFICE

ASIAN BANKER TECHNOLOGY AWARDS

STRUCTURED PRODUCTS TECHNOLOGy RANKINGS 2012number one Trading system – creditnumber one Trading system – cross assetnumber one Trading system – Foreign exchangenumber one Trading system – ratesnumber one risk management – collateral management

NUmbER ONE TRADING SySTEm TECHNOLOGy PROvIDER

RISK TECHNOLOGY RANKINGS 2011

number one overall Trading systemnumber one Pricing and analytics – equitynumber one Pricing and analytics – infl ation

mISyS RECENT mARKET RECOGNITION

bEST RISK mANAGEmENT INITIATIvE

ASIA ASSET MANAGEMENT AWARDS

LEADING SINGLE TECHNOLOGy PLATFORm – PORTFOLIO, TRADING AND RISK mANAGEmENT

HEDGE FUND JOURNAL AWARDS 2011

STRUCTURED PRODUCTS TECHNOLOGy RANKINGS 2011number one Trading system – equitiesnumber one Trading system – interest ratesnumber one Pricing and analytics – equities

Misys is at the forefront of the fi nancial software industry, providing the broadest portfolio of banking, treasury, trading and risk solutions available on the market. With 1,800 customers in 120 countries our team of domain experts and partners have an unparalleled ability to address industry requirements at both a global and local level.

Misys was formed by the merger of Misys with Turaz, which includes the award-winning Kondor+ product line. Combined they are able to address all customer requirements across both the banking and trading book businesses. Misys is the trusted partner that fi nancial services organisations turn to for help solving their most complex problems.

AbOUT mISyS

misys and the misys “globe” mark are trade marks of the misys group companies. copyright© 2012 misys. all rights reserved. Find out more at www.misys.com

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