PeopleSoft Risk-Weighted Capital

Risk management has become top-of-mind for financial services firms, due to ongoing industry consolidation, increasing competition, new capital regulations, and the need to manage for value. Optimal capital levels must protect against losses and meet regulatory requirements while still allowing investment in profitable opportunities. Assessing and analyzing risk is a critical part of allocating capital and measuring business performance. Yet for most financial institutions, the biggest challenge is consistently measuring risk among vast amounts of complex data.

Oracle's PeopleSoft Risk-Weighted Capital offers tools for optimizing capital allocations and analyzing risk-adjusted performance. It enables you to align capital and risk and to calculate economically appropriate capital charges. Once these charges for expected losses and capital have been determined, PeopleSoft Risk-Weighted Capital aggregates them by customer, product, channel, business unit, or time-enabling you to align capital costs and pricing across multiple dimensions and better measure economic performance.

Basel II Capabilities

• Perform comprehensive on- and off-balance sheet risk modeling with complex instrument coverage.
• Measure exposure through explicit representation of credit risk management strategies.
• Closely replicate your institution's credit processes via flexible, open design.

Future Performance Projections

• Perform what-if analysis on your assumptions.
• Calculate capital requirements based on your projections of credit-quality migrations and loss severity.
• Understand the risks associated with realigning your portfolio of customers and products.

Flexible Methodologies

• Define and track credit, market, operational, or regulatory risk, based on the unique needs of your institution.
• Define rates of expected loss and economic capital requirements for each risk type.
• Define the level of granularity by product, customer, or channel for applying risk weights.