– Enterprise-wide risk intelligence topping banks’ new regulatory shopping list
Aleri Inc., a leading provider of enterprise-class complex event processing (CEP) technology and CEP-based solutions, today announced the publication of an analysis report entitled "What If You Could Have Heard the Bubble Bursting," authored by the neutral think-tank JWG-IT Group.
The report identifies the essential tools banks must acquire in order to comply with new liquidity risk regulations. The paper also explains the business benefits of implementing enterprise-wide risk intelligence tools. Aleri is a member of JWG-IT’s Liquidity Risk Action Network (LiRAN) and is also participating in:
* The ongoing development of a neutral liquidity risk reference architecture which overcomes the issues banks face in meeting new regulatory demands
* A webinar {http://www.aleri.com/news/upcoming-events/what-if-you-could-spot-next-lehman-brothers-falling} on 4 June and a companion video {http://www.aleri.com/resource-library/videos/what-if-you-could-spot-next-lehman-brothers-falling} entitled "What if … you could have seen Lehman falling?" which describe the business benefits of managing liquidity risk
* On 9 June, a Capital Markets Chamber debate entitled ‘This house believes new liquid architectures will dominate strategic plans for 2010’
PJ Di Giammarino, ceo of JWG-IT, comments: "Even at this early stage of the new regime, it is clear that one of the bank’s key success factors will be the exposure of its underlying information to senior management in a real-time and unobtrusive manner. Event-driven architectures that transform information from their core processing systems and enrich, bucket, store, and retrieve it efficiently are well suited to the task."
"New regulations have forced banks past a tipping point for their infrastructure and they will need to implement new approaches to liquidity risk management. While it is possible to remain on legacy platforms, it will become increasingly impractical to glue information together in spreadsheets and static accounting-focused databases."
Anticipating the need for better ways of managing liquidity risk, which markets and regulators are now calling for, Aleri developed and launched the Aleri Liquidity Risk Manager (LRM), designed to offer banks an enterprise-wide tool for measuring liquidity exposure and liquidity ratio. LRM provides insight into the effects of stress events on enterprise liquidity, enabling more effective contingent liquidity risk management practices and allowing key personnel to calculate liquidity gap positions, identify periods at risk, define and store liquidity scenarios, run stress scenarios against gap positions, intelligently apply and recommend use of counterbalancing capabilities to gap positions, and improve liquidity gap and ratio reporting to regulators.
Don DeLoach, ceo Aleri, comments: "The information required to manage liquidity risk profitably is in the banks’ systems. The challenge is to find it in a way to tap the source systems in a clean, maintainable and efficient manner. Not only will this keep the CFO happy by reducing costs, it will get the business much closer to the holy grail of enterprise-wide risk intelligence."
