Optimizing Capital Reserves

Business Problems:

• May be inaccurately measuring risk exposure based on holdings and positions on financial instruments for end-of-day reports.
• Struggling to obtain an accurate picture of all holdings and positions on financial instruments and associated counterparties.
• Difficulty assessing and adjusting risk levels and optimizing
  capital reserves.

Root Cause: The root cause of these business problems is data. Customer, counterparty and financial instrument data is created and updated by thousands of individuals in different lines of business and departments and stored separately in different formats in multiple systems across the institution. The inability to access reconciled and related data within domains and across domains makes it difficult to get a clear picture of complex financial instrument and counterparty hierarchies, and the even more complex relationships between them.
(See solution illustrated below.)

Business Impact of the Problem: Unfortunately, risk managers spend excessive time searching for and manually reconciling data. They struggle to obtain an accurate view of all the firm’s holdings and positions on financial instruments. Since these managers may not be 100 percent confident in the risk exposure measures included in end-of-day reports, they are more likely to over- or under-estimate capital reserve requirements.

IT Problems:

• Lack the ability to flexibly scale and quickly adapt to changing business needs.
• Lack the time, resources and budget to ensure all data is reconciled and related within and across data domains in all systems across the institution.
• Impeded by a non-scalable point-to-point integration environment and inflexible data stores.

Solution: Improve your ability to accurately calculate capital reserves. Overcome the challenges of storing data in disparate data silos while maximizing investments in existing applications by implementing the proven and flexible
Informatica MDM. Leverage reconciled and related financial reference data within and across domains that provides a clear view of:

• Customer data
• Hierarchies and relationships among all financial instruments
• Hierarchies and relationships among all counterparties
• Hierarchies and relationships between all financial instruments
  and counterparties
• Current holdings and positions on each financial instrument

Results: Empower risk managers to leverage reconciled and related financial reference data within and across domains in real time to:

• Gain accurate views of current holdings and positions on financial instruments and associated counterparties.
• Accurately measure risk exposure to all counterparties based on holdings and positions on financial instruments for end-of-day reports.
• Optimize capital reserves.

Find out how.