SunGard’s Adaptiv Helps Provide Greater Accuracy and Transparency in Credit Risk Management

SunGard’s Adaptiv Analytics, Adaptiv Credit Risk and Adaptiv Market Data Manager solutions are helping strengthen credit risk and exposure management and reporting at National Bank, a financial services group. Adaptiv is helping the firm increase confidence in its risk calculations and prepare for new regulation.
 
Since 2008 Adaptiv solutions have helped National Bank consolidate credit risk measurement across multiple asset classes.  The project’s initial goal was to properly simulate risk exposure through time and produce more refined risk figures.  However, the implementation has also helped increase transparency by giving traders and other users insight into their limits, trade details and risk profiles, helping them make better trading decisions and trade new products in new geographies more easily.
 
Patrick Doré, senior manager of the counterparty credit risk group at National Bank, said, “SunGard has given us more flexibility around strategic analysis and risk reporting to senior management. We’re now capable of producing reports, including CVA, on demand, either through the Web application or through our Riskscape database.  We can now provide to management detailed analyses and are capable of explaining what drives our risk at either the counterparty or portfolio level.”
 
Brian Traquair, president of SunGard’s capital markets business, said, “Effective credit risk management can help banks not only monitor their risk but also identify new trading opportunities. Implementing Adaptiv can help increase transparency among traders and senior management, improve efficiency by automating credit limit and exposure management, and identify new revenue opportunities.”