BancWare ERisk will be delivered on an ASP basis and will complement BancWareâs solution suite with risk correlation models, credit risk models, proprietary data, and risk management consulting services, helping customers to more effectively manage risk and make strategic business decisions. It will help financial institutions to deploy an economic capital framework to meet regulatory expectations, including Basel II and SR 99-18, and improve their return on equity and competitive positioning through risk-based pricing.
While most financial institutions today manage risk in a siloed, fragmented approach, without consideration for interrelationships between risk types, BancWare ERisk will provide an inclusive picture of a companyâs risk profile by incorporating market, credit, operational and ALM risk data. This comprehensive view will help financial institutions to analyze, manage and price risks associated with business lines including lending, trading, processing, asset management and other fee-based businesses.
"Competitive and regulatory forces are converging," said Virginia Garcia, research director, financial services strategies and IT investments at TowerGroup. "This challenges financial services institutions to leverage their compliance and risk management systems to deliver the right product, at the right time, at the right place, at the right price, to the right customer. As a result, financial institutions are increasingly using economic capital management to help them to make better strategic decisions in product design, customer relationship management and pricing."
BancWare ERisk will provide the economic capital measurement on risk data from across the enterprise in order to help financial institutions better understand their sources of risk and price and manage their businesses accordingly.
"ERiskâs success to date has been driven by rapidly deploying an efficient, secure ASP-based solution and applying a proven risk management consulting framework to help our customers develop effective economic capital management strategies and improve their competitive position. Becoming part of SunGard will help us to leverage its global resources and complementary solution suites for the benefit of our existing customers as well as give us the opportunity to bring our capabilities to a greater number of organizations globally," said David Samuels, chief operating officer of BancWare ERisk.
Terence Faherty, president of SunGardâs BancWare business unit, said, "As our customers increasingly look to use economic capital management to enhance strategic decision-making, the addition of ERisk to the BancWare group will provide comprehensive economic capital analysis capabilities and complimentary consulting services to support this goal, with the cost and efficiency benefits of an ASP-based delivery method. Our customers will benefit from the combined value of ERiskâs risk aggregation capabilities, capital management framework and well-established risk management consulting practice, coupled with SunGardâs complete offering for risk, ALM and compliance."