Financial Services
Today, banks & financial institutions need agility to manage the complexities of diverse banking operations in a changing environment. Coupled with the need to be compliant, banks are looking into Basel II solutions.
Financial management and reporting are undergoing a period of unprecedented change. The single risk type in Basel II that can be expected to have the greatest impact on customers, especially borrowers, is the regulatory capital requirement for credit risk. Banks will be requiring more information from customers. The ability to comply and manage the Impact from these changes is crucial.
There is a need to create sustainable data management architecture to apply appropriate technology to the development of data management practices and policies, as well as to control access to the change and use of data as determined by governmental regulation and corporate policy. There are requirements for more advanced data mapping, migration, cleansing, and ongoing data quality monitoring tools, which cover not only business unit data but also group wide entities.
Risk architectures and data models need to also come together in a more coherent manner. There is a clear need to at least complement the taxonomy of data across business units, risk categories, and risk/financial applications.
Together with SAP, ObTech offers an integrated financials and Basel II solution on a single technology platform. We offer an end-to-end integrated credit risk solution with Basel II functionality, (Basel II Credit Risk solution), which are not isolated components. Our approach is based on technical knowledge & expertise of finance systems and a deep understanding of the challenges and changes of the financials industry.
SAP's functional coverage for Financials Industry
We offer solutions for these specific financial areas:
- Data Management and Integration
- Risk and/or Financials Databases
- Workflow
- Collateral Management and Optimization
- Reporting Tools and Regulatory Reporting
- Credit Portfolio Management
SAP suite of solutions for Financials industry
SAP Basel II supports all of the methods for calculating credit risk and capital requirements, offers
an optimization algorithm for collateral distribution, and allows users to perform detailed risk analyses and stress testing. It offers robust data management functionality, data reporting tools that allow the information to meet the needs of multiple user bases, and legal and regulatory reporting tools and functions
SAP Accounting for Financial Instruments offers all required IAS 39 functionality. It can be used as a complete sub ledger for all instruments and does all required hedge accounting. In addition to IAS, the product covers several local GAAP requirements.
SAP Asset Liability Management allows banks to manage interest rate, foreign exchange liquidity, and depreciation risks and supports the use of both standard and customized scenarios and simulations to understand and manage risk.
SAP Market Risk Management offers both static and dynamic risk control tools and allows clients to run various scenarios.
SAP Operational Risk Management consists of three major building blocks: Configuration and Set-up (risk catalogues, risk levels, organizational units, risk priorities); Risk Assessment Process (activity
recording, detection of risks, analysis, workflow, documentation); and Risk Analysis and Reporting (ad hoc reports, OLAP reporting).
SAP Limit Management offers features for an active limit management process for both trading and commercial banking products. It gives control over risk limits on multi-dimensional levels.