Kondor global risK release 3.6T - Misys
Kondor global risK release 3.6T - Misys
Kondor global risK release 3.6T - Misys
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<strong>Kondor</strong> <strong>global</strong> <strong>risK</strong><br />
<strong>release</strong> <strong>3.6T</strong><br />
inTegraTed crediT and marKeT <strong>risK</strong> managemenT<br />
CONTROL<br />
FORECAST<br />
UNDERSTAND
<strong>Kondor</strong> <strong>global</strong> risk <strong>3.6T</strong><br />
NEW OPPORTUNITIES, NEW CHALLENGES<br />
Financial institutions are facing tougher regulations around credit and<br />
market risk with tight deadlines for compliance. but complying with<br />
regulations is just the minimum. increasingly boards are placing pressure<br />
on management teams to improve transparency, introduce best practice<br />
and report risk on an intra-day and in some cases real-time basis.<br />
However, delivering a consistent and timely view of <strong>global</strong> exposure<br />
for the different aspects of risk across the business can be a challenge.<br />
This is particularly true where financial institutions operate multiple<br />
trading systems.<br />
banks are being pushed to anticipate and plan more effectively, so<br />
comprehensive stress testing has become a top priority. at the same time<br />
risk systems are struggling to handle increasing transaction volumes.<br />
system rationalization is on still the agenda, with operational cost<br />
savings as one of the key drivers.<br />
Key Challenges<br />
Greater system agility and speed<br />
businesses are demanding that iT responds<br />
more quickly to develop new capabilities and<br />
solutions in response to changing market<br />
conditions and regulations.<br />
Joined-up view over credit risk<br />
Post crisis, there is a need for banks to have a<br />
joined-up view over credit risk across their<br />
business. Having a number of different systems<br />
makes this a potentially costly problem to solve.<br />
Rapid response to external events<br />
Financial institutions have to anticipate and be<br />
ready to respond more rapidly to external<br />
events, such as the downgrading of a<br />
counterparty.<br />
Proactive risk management<br />
risk managers spend up to 80% of their time<br />
gathering and collating data, leaving little time<br />
for proactive risk management.<br />
360 view over market risk<br />
it’s no longer acceptable for financial<br />
institutions to be exposed to unknown sources<br />
of market risk.<br />
2 brochure<br />
‘‘Increasingly financial institutions<br />
are looking at ways to improve<br />
transparency, introduce best<br />
practice and report risk<br />
intra-day and in real-time.”
<strong>Kondor</strong> Global Risk <strong>3.6T</strong><br />
CONTROL, UNDERSTAND, FORECAST<br />
Financial institutions are facing<br />
tightened regulations around<br />
credit and market risk management.<br />
At the same time, senior managers<br />
are showing a renewed interest<br />
in risk management and are<br />
asking increasingly challenging<br />
and complex questions. There is<br />
huge pressure on risk reporting<br />
functions to deliver results while<br />
simultaneously becoming more<br />
flexible and responsive. However,<br />
being able to aggregate and compute<br />
risks consistently, flexibly, and on<br />
demand is a complex challenge.<br />
<strong>Kondor</strong> Global Risk (KGR) has been<br />
designed to address these challenges.<br />
It provides a single, integrated<br />
product for the management of<br />
market risk, credit risk and limits in<br />
real-time.<br />
built with an open and flexible data model, Kgr is<br />
designed to operate on top of multiple front office<br />
systems, with deep two-way integration – from<br />
checking trade compliance in real-time, directly<br />
from a front office screen, to sharing the front office<br />
analytical libraries.<br />
The latest <strong>release</strong> includes a groundbreaking risk<br />
dashboard that enables risk managers to visualize<br />
and understand information quickly. Kgr doesn’t<br />
just alert users to risk – it immediately explains from<br />
where the risks originate so that action can be taken<br />
to address them. <strong>Kondor</strong> <strong>global</strong> risk allows financial<br />
institutions to make proactive business decisions<br />
based on genuine risk intelligence.<br />
Why choose KGR?<br />
Intuitive and dynamic risk dashboard<br />
The dashboard in Kgr, with its powerful<br />
analysis screens, provides a new, intuitive<br />
way to visualize information and understand<br />
its meaning quickly. an advanced data<br />
aggregation engine allows users to look at<br />
the information from different perspectives<br />
and drill-down on areas of interest.<br />
Use front-office analytical libraries in<br />
risk reporting<br />
Uniquely, Kgr ensures data consistency by<br />
using the actual analytical libraries developed<br />
and maintained by the front office.<br />
Credit and Market Risk engines in<br />
one product<br />
Kgr delivers real-time access to all risk factors,<br />
whether credit or market based, with the most<br />
sophisticated analysis tools.<br />
Sophisticated and flexible stress testing<br />
Kgr includes an advanced stress testing<br />
engine that allows customers to model<br />
exposures to different historical, event<br />
driven and client specific scenarios over<br />
any time period.<br />
Highly flexible limits rules<br />
Kgr supports sophisticated limits rules that<br />
allow users to structure any kind of limit,<br />
internal business hierarchy, and counterparty<br />
hierarchy. it also allows risk managers to<br />
re-allocate limits on the fly.<br />
Powerful data aggregation and analysis<br />
engines<br />
Kgr offers unrivalled power and flexibility to<br />
build and run the most complex scenarios;<br />
users can update data and re-run only the<br />
relevant parts of a report. These elements are<br />
then automatically rolled up into the overall<br />
result without the need for time consuming<br />
recalculations.<br />
Open, flexible and generic data model<br />
our open and generic data model gives<br />
customers the flexibility to model any<br />
exposure using their own measures of risk.<br />
it also allows them to simulate any banking<br />
activity and to fully explore counterparty risks.<br />
Brochure<br />
3
<strong>Kondor</strong> Global Risk <strong>3.6T</strong><br />
KONDOR GLObAL RISK<br />
ValUe ProPosiTion oVerView<br />
LIMIT<br />
MANAGEMENT<br />
4 Brochure<br />
EXPOSURE/<br />
LIMIT<br />
MANAGEMENT<br />
CREDIT LINE<br />
MANAGEMENT<br />
BASEL II<br />
PRODUCT MODULES PROPOSITIONS<br />
KONDOR<br />
GLOBAL<br />
RISK<br />
CREDIT RISK<br />
PFE<br />
CVAR<br />
MARKET<br />
RISK<br />
IMA MARKET<br />
RISK<br />
MONTE<br />
CARLO VAR
<strong>Kondor</strong> Global Risk <strong>3.6T</strong><br />
Get a complete view over credit<br />
risk across the business<br />
Kgr provides open, flexible web service aPis that<br />
can take inputs from multiple front office systems<br />
to centralize the assessment of credit exposures.<br />
coupled with our comprehensive credit lines<br />
management functionality, this allows customers<br />
to manage overall credit exposures across their<br />
trading and banking books.<br />
Address the growing need for more<br />
sophisticated limit management<br />
Thanks to our asset class agnostic data model, data<br />
from any banking system can be centralized in Kgr.<br />
our limits rule engine allows customers to structure<br />
any kind of limit and internal business hierarchy or<br />
counterparty hierarchy, and allows the dynamic<br />
reallocation of limits on the fly. This means users<br />
can implement limit management to suit the level<br />
of complexity and flexibility their business requires.<br />
Anticipate and respond rapidly<br />
as external factors change<br />
The advanced stress testing features in Kgr<br />
enable risk managers to simulate a downgrade<br />
of a counterparty or a shift in risk factors, and<br />
rapidly assess the true exposure of the bank.<br />
Respond more rapidly to the<br />
needs of the business with a single<br />
integrated product<br />
Kgr has the range of functionality across market<br />
risk, credit risk and limits management, and the<br />
proven flexibility, to replace existing in-house<br />
developed products – more than 200 customers<br />
already use Kgr.<br />
Kgr has been designed to be straightforward<br />
to implement. our team of experts work with<br />
customers to deliver the exact solution they<br />
require in months, not years.<br />
Brochure<br />
5
<strong>Kondor</strong> Global Risk <strong>3.6T</strong><br />
benefit from our knowledge of best<br />
practice in emerging markets<br />
Kgr is designed to meet the most sophisticated and<br />
complex of customer and local market demands.<br />
our in-house team of 360 certified professionals<br />
has worked with market leading banks in all areas<br />
of the globe. our industry experts are based<br />
in 48 countries, including india, china, africa,<br />
and the middle east, allowing customers to take<br />
advantage of our knowledge of best practice<br />
in both developed and emerging markets.<br />
Spend more time analyzing the<br />
data and proactively supporting<br />
the business<br />
with Kgr, users can update and correct data and<br />
then re-run just the part of the analysis that needs<br />
correcting, and the result rolls up into the overall<br />
risk report automatically. so users can spend more<br />
time analyzing the data, keeping an eye on what<br />
traders are doing, and proactively investigating the<br />
real drivers of risk.<br />
Drill-down through the figures across<br />
the business to get the full picture<br />
Kgr holds base data within the product and<br />
retrieves, stores and aggregates this data in<br />
a highly efficient way. dynamic dashboards<br />
allow users to drill down through the figures<br />
right across the business, at lightning speed.<br />
Put risk information at the fingertips<br />
of traders<br />
during deal capture, traders can check compliance<br />
with all the business’ risk management rules in<br />
real-time. This ensures that they have the necessary<br />
information at hand to take advantage of<br />
opportunities as they arise.<br />
6 Brochure
<strong>Kondor</strong> Global Risk <strong>3.6T</strong><br />
CORE COmPONENTS<br />
REAL-TImE DATA<br />
AGGREGATION PLATFORm<br />
ASSET CLASS AGNOSTIC<br />
DATA mODEL<br />
designed from the outset to accept and distribute data in real-time, Kgr acquires, cleanses and<br />
stores the total range of trade, market and counterparty data required for the analysis of market<br />
and credit risk.<br />
built from the ground up to be asset class agnostic, Kgr handles any instrument type and<br />
enables the rapid on-boarding of new asset classes.<br />
INTEGRATION API The comprehensive product aPi supports deep two-way integration with in-house and<br />
third-party trading and banking systems. Kgr is fully integrated with <strong>Kondor</strong>+.<br />
DISTRIbUTED ARCHITECTURE Kgr is built on a modular, distributed architecture to support multi-site, <strong>global</strong><br />
implementations.<br />
CREDIT RISK AND LImIT mANAGEmENT COmPONENTS<br />
CREDIT RISK ANALySIS ENGINE The highly efficient scenario analysis and stress testing engine delivers notional, replacement<br />
cost, PFe, linear and bis methodologies, supports credit migration techniques and meets<br />
basel iii economic capital calculation and reporting requirements.<br />
LImITS RULES ENGINE a powerful rules builder to structure virtually any type of limit (including concentration limits),<br />
using any combination of internal business hierarchy, counterparty hierarchy, country, industry,<br />
rating, currency, instrument, user, and positions.<br />
API FOR REAL-TImE LImIT<br />
mANAGEmENT IN THE<br />
FRONT OFFICE<br />
The Kgr aPi supports deep, two-way integration with front office systems. simulation functions<br />
allow users to examine the effects of trades before they are placed, request on-line<br />
authorizations to exceed a limit, with the credit manager then approving or rejecting<br />
the request.<br />
REPORTING extensive reporting capabilities provide standard, custom and what-if reports. in addition<br />
‘excess management’ functionality allows risk managers to quickly drill down to identify the<br />
causes of a limit breach.<br />
COLLATERAL mANAGEmENT Kgr provides enterprise-wide collateral management using an automated workflow that<br />
includes isda & csa agreement margin terms, computation of margin calls, and a wide<br />
range of other reports for better control practices.<br />
CREDIT LINE mANAGEmENT Kgr enables comprehensive and dynamic management of credit lines.<br />
ADvANCED SImULATION<br />
CREDIT RISK mANAGEmENT<br />
The Future exposure engine provides a simulation tool to better estimate the potential future<br />
exposure of the bank by computing monte carlo simulated market rates for risk factors.<br />
a counterparty exposure report displays exposures for a given counterparty versus time<br />
for a given PFe profile, in gross and net terms.<br />
CREDIT vALUE AT RISK The credit Var module provides advanced monte carlo simulation to model the impact of<br />
counterparty default and ratings upgrades/downgrades on a portfolio. a black-scholes-merton<br />
default model and a credit metrics methodology based model are included.<br />
mARKET RISK mANAGEmENT COmPONENTS<br />
DyNAmIC RISK DASHbOARD<br />
AND vISUALIzATION TOOLS<br />
INTEGRATION API DEDICATED<br />
TO mARKET RISK<br />
mARKET RISK<br />
ANALySIS ENGINE<br />
intuitive and flexible analysis screens provide a real-time view of market risks, with lightning fast<br />
slice-and-dice and drill-through to the underlying information. Kgr incorporates a number of<br />
intuitive dashboards include Var and Present Value explainers, Var reporting, back Testing and<br />
stress Testing.<br />
Kgr provides a flexible aPi to enable rapid integration with third party and in-house developed<br />
libraries used in the front office.<br />
The highly efficient scenario analysis and stress testing engine provides historical and monte<br />
carlo-based scenario generation and Var calculation. a market data repository and flexible<br />
scenario generation tools support all calculations and testing in order to respond to regulator<br />
constraints. all analysis can be stored for future reuse or reference using Kgr’s automatic<br />
archiving functionality.<br />
RATE mANAGEmENT mODULE Kgr provides market data storage for the management of wide range of rate types and risk<br />
factors from any data source. Visualization and control functionality delivers capabilities<br />
including time series display, gap Filling for missing data and rate exceptions<br />
to manage inconsistencies of market data.<br />
Brochure<br />
7
TURAz’S RECENT mARKET RECOGNITION<br />
Number One Overall Technology vendor<br />
Number One Trading Systems – cross asset<br />
Number One Trading Systems – FX<br />
Number One Pricing and Analytics – infl ation<br />
bEST TRADING SySTEm vENDOR RISK mAGAzINE<br />
RISK 20 AWARDS<br />
About Turaz<br />
Turaz is the leading provider of trade and risk management software <strong>global</strong>ly. it employs over 1,000 skilled professionals serving<br />
more than 600 fi nancial institutions across 66 countries. some 25,000 fi nancial professionals rely on Turaz’s fl agship products<br />
including <strong>Kondor</strong>+, <strong>Kondor</strong> Trade Processing (KTP), <strong>Kondor</strong> <strong>global</strong> risk (Kgr) and Topoffi ce to trade and proactively manage<br />
risk across the enterprise.<br />
Founded in 1992, Turaz was acquired from Thomson reuters by Vista equity Partners in January 2012.<br />
For more information please visit www.turaz<strong>global</strong>.com<br />
© Turaz 2012. all rights reserved. 48003233.<br />
NUmbER ONE RISK TECHNOLOGy PROvIDER 2009 & 2010<br />
RISK TECHNOLOGy RANKINGS 2010<br />
Number One Overall Technology vendor<br />
Number One Support Services –<br />
implementation effi ciency<br />
Number One Trading Systems Front-to-back<br />
O f fi c e – Foreign exchange<br />
Number One Trading Systems Front-to-back<br />
O f fi c e – interest rates<br />
Number One Risk management – back offi ce<br />
bEST vENDOR FOR DEALING TECHNOLOGy<br />
FX WEEK bEST bANKS AWARDS 2010<br />
Number One IAS Compliance<br />
Number One Pricing and Analytics – FX<br />
Number One Pricing and Analytics – rates<br />
Number One Risk Aggregation – market,<br />
credit, counterparty, liquidity, operational<br />
NUmbER ONE RISK TECHNOLOGy PROvIDER 2008, 2009 & 2010<br />
ASIA RISK TECHNOLOGy AWARDS 2010<br />
Number One Risk management –<br />
credit risk management<br />
Number One Trading Systems Front-to-back<br />
O f fi c e – Hybrids/cross-asset class<br />
Number One Derivatives Pricing and Risk<br />
Analytics – interest rates<br />
Number One Derivatives Pricing and Risk<br />
Analytics – Hybrid/cross-asset class<br />
Number One Derivatives Pricing and Risk<br />
Analytics – credit