The Luxembourg private bank Sal. Oppenheim jr. & Cie and Algorithmics, the international provider of enterprise risk solutions, are today in Cannes announcing a plan to found a joint venture to provide a range of new risk and capital management services.
Based on Algorithmics’ existing software applications Algo Market Analytics, Algo Credit Exposure and Algo Credit Economic Capital, the joint venture will develop integrated solutions for the management of risk and return which will cover market risk, liquidity risk and credit risk as well as all asset classes. The aim is to provide solutions which bring the management of risks and returns to a new level, not only to the Sal. Oppenheim group – which is also acquiring a license for its own usage – but to its clients and external third parties. The joint venture will be set up as an independent entity, which is equally owned by both parties.
Ulrik Lackschewitz, managing director of Risk Management at Sal. Oppenheim, explained, ‘The past months have shown how essential it is to have a comprehensive view of total risk exposure and a consistent risk/return-estimation. The new solution will be an essential foundation of our future management decisions.’
Friedrich Carl Janssen, personally liable partner at Sal. Oppenheim and also responsible for the risk management of the group, is confident that advanced risk and capital management will become an indispensable premise for every financial institution. He said, ‘A tailor-made solution which incorporates market and credit risk with economic and regulatory capital management of institutions is currently unique in the market. Therefore I look forward to a successful cooperation with Algorithmics as part of our joint venture.’
Dr. Michael Zerbs, president and coo of Algorithmics, said, ‘Sal. Oppenheim and Algorithmics share a similar vision of risk management. It is based on the view that better use of capital and risk management can provide a strategic advantage for a financial institution and its clients, to support growth and shareholder value creation. For instance, sound and scalable enterprise risk management solutions can help companies get new products to market more quickly and communicate with clients more effectively, enhancing competitive advantage. It is an essential success factor for the joint venture that it can rely on the broad risk management and financial engineering know-how of Sal. Oppenheim.’