Razor Risk Technologies Limited [ASX: RZR], a leading global provider of risk management technology and consulting solutions, has published a white paper providing guidance on UK liquidity risk management.
In regulations announced last month, the UK Financial Services Authority requires all UK banks, building societies and investment firms to report their liquidity risk. Given the level of detail, frequency and stress testing requirements, as well as the implementation deadlines, the new rules present a significant challenge to most financial institutions.
The free white paper from Razor Risk provides information on:
• Understanding the level of detail, frequency and stress testing requirements of the new FSA liquidity risk regulations
• Finding out about Razor’s capabilities for meeting the new reporting regime, including a data framework, a scenario and stress testing engine, and an analysis and reporting module
Razor Risk Technologies believes that for institutions looking to meet the new FSA liquidity risk rules, the short implementation timetable argues against in-house development.
Institutions have to produce both quantitative and qualitative reports, and have to conduct wide ranging scenario analysis and stress testing. Reporting deadlines are tight, requiring a high degree of reliable automation.
In addition, the quantitative analysis demanded by the liquidity regulations requires a system that can handle all the complex calculations, can connect to wide-ranging data sources, and is high performance, robust and scalable.
There is little time to build such a system internally, and any project to do so runs all the risks associated with complex technology development, such as time and budget overruns, while diverting valuable resources from the business.
Razor, a proven risk management system, can help institutions meet the new reporting regime implementation timetable and achieve best practice in liquidity risk management.
Razor is already in use for liquidity risk management by tier one banks and other financial institutions, and has a track record for delivering on time and to budget.
For the full white paper.
