SAS, FINCAD Team Up on BI To Improve Bank Visibility 
Under a partnership between FINAD and SAS Institute Inc, business intelligence (BI) will play a larger role in helping banks recover from the on-going financial crisis, and even avoid future problems by providing more visibility into complex trading instruments.
Under a partnership between FINAD and SAS Institute Inc, business intelligence (BI) will play a larger role in helping banks recover from the on-going financial crisis, and even avoid future problems by providing more visibility into complex trading instruments.
Under the partnership, FINCAD, a trusted provider of financial derivatives analytics for all major asset classes will join with SAS’ Risk Management for Banking risk analysis offering. The result will be improved ways to meet the needs for accurate and proactive enterprise risk management and valuation.
Using BI To Improve Derivative Visibility, Data Quality
Could Help Financials Avoid Another Credit Crisis, Execs Say
Banks are facing pressure to improve risk management practices, comply with industry standards for valuation strategies and enhance transparency -- all in an effort to avoid a repeat of the credit crisis, according to David Rogers, global product manager for risk at SAS, Meanwhile, bank regulators want financial institutions to improve incomplete, inconsistent and unreliable data.
“SAS recognizes the need for firms to innovate and develop business supported by a complete risk framework of data management, risk analytics and risk information distribution effectively across the enterprise,” Rogers said in a statement. Leveraging FINCAD within SAS BI-based risk management offerings will help clients meet these demands, he added.
“Independent valuation is a key requirement in today’s marketplace,” said Amar Budhiraja, Director, FINCAD Alliance Program. ”Third-party solutions from leading vendors such as FINCAD and SAS provide banks with a more comprehensive risk management solution, enabling them to save significant time and money over developing the systems in-house, while giving them the scalability and flexibility they require.”
In specific, the FINCAD/SAS effort will provide a ready-integrated and customizable solution that will provide financial firms:
- Risk capabilities covering market, credit, operational, and all enterprise risk;
- Access to cross-asset class derivatives and fixed income analytics libraries; and
- Full disclosure of the data, models, analytics, and risk measures.
Under the covers, SAS’ Risk Management for Banking
- Focuses on risk model output, adding quality and traceability of reports and output data from models used to generate the data for the risk models.
- Enables banks to configure proprietary models and analytics to meet the needs of the bank as well as changing regulatory requirements.
- Provides preconfigured functionality and reporting for market risk, credit risk, ALM and firm-wide risk, which enables fast deployment.
- Helps banks quickly assess the data needed for a particular application with an extensive banking data model.
News of the SAS/FINCAD’s offering for banks is the latest offering to address banking visibility. IBM Cognos 8 Credit Risk Performance, launched in 2009, offers credit risk insight in standard reporting formats—enabling banks to measure and manage the right credit risk information confidently.
IBM Cognos 8 Credit Risk Performance provides open enterprise class platform to enables greater interoperability with organizations’ data systems to get a unified view of performance. The architecture provide advantages to both IT and Business professionals.
- Value for Business: Facilitate seamless business decisions and effective risk management across business units, geographies and products in areas including originations, Basel II and front- and back-end performance with industry-standard metrics and analytics templates.
- Value for IT: Change as quickly as your business does with reduced installation windows via proprietary methodologies, diagnostics and templates from IBM Global Business Services (GBS).
