Algorithmics has been ranked as a leader for its Basel II credit risk management solutions in a new vendor ranking from Celent, the research and advisory firm.
Celent’s research, entitled Beyond Basel II: Evaluating the Financial and Credit Risk Solution Vendors 2008, assesses offerings from ten key vendors and examines the state of the market for risk management solutions and the innovative vendors that are helping institutions transition beyond regulatory basics. Of the four key evaluation criteria, Algorithmics is ranked as a leader in advanced features and technology and among the top of those evaluated for its depth of client services. These rankings recognise the sophistication of Algorithmics’ advanced economic capital frameworks and its global footprint of reference clients.
The report describes Algorithmics as "maintaining a leadership position as a risk specialist, with an integrated approach across market, credit and operational risk, strong financial engineering capabilities, customised rating models and credit analytics, and verticalised offerings for different user groups (treasury, hedge funds, credit control functions, collateral operations, etc) … with services combining not only risk analytics, models and software but also ASP options for delivering credit risk advisory services and industry level data pooling services."
Looking at the progress of Basel II implementations, Cubillas Ding, Celent senior analyst and author of the report, says: "There are lessons to be learned from first-wave projects. From an IT perspective, data quality issues, technology integration challenges, and adaptability of risk management systems are often cited as concerns in realising the full benefits of risk initiatives. Technology considerations and the solutions adopted stand as major underpinnings in realising success."
Ben De Prisco, senior vice president, Algorithmics, added: "We are working with several organisations whose Basel II programmes have gone far beyond compliance to helping them really understand and manage their risk in a way that benefits their businesses. For Algorithmics, this is always our goal as we see enterprise risk management as a fundamental driver of value creation."
