ProveIT Uses Event Processing Solution to Enable Banks to Release Billions of Dollars of Capital Set Aside for Risk Exposure
 
 

ProveIT Uses Event Processing Solution to Enable Banks to Release Billions of Dollars of Capital Set Aside for Risk Exposure

Established in 1987, ProveIT Ltd is the leading complex event processing (CEP) solutions provider, striving to optimize business performance through comprehensive data exploitation. Recognizing how critical real-time information is to many organizations, including those in the banking and financial industry, ProveIT developed a real-time risk analysis platform, RiskIT, with Oracle Event Processing at its core.

RiskIT provides organizations with real-time insight into their risk exposure. It helps banks and financial institutions to significantly reduce trading costs and enables them to release billions of dollars in additional funds that the regulator has set aside for risk exposure because RiskIT provides aggregated global risk exposure on-demand.

 
 

 
 

Challenges

A word from ProveIT Ltd

  • "Oracle Event Processing was instrumental in bringing RiskIT to market. With Oracle Event Processing at its core, RiskIT offers customers real-time insight into their risk exposure and helps banks comply with strict regulations, thereby significantly reducing risk exposure, capital provisioning and trading costs." – Graham V. Smith, Managing Director, ProveIT Ltd

  • Provide customers with a comprehensive, real-time risk management system enabling them to assess market risk immediately rather than after two or three days
  • Ensure that the system can be implemented quickly to help banks and financial institutions comply with strict rules instituted by the Financial Services Authority (FSA) following the 2008 financial crisis
  • Enable customers to capture and consolidate data from multiple systems to accurately assess market risk in real-time

Solutions

Oracle Product and Services

  • Developed a risk management system with Oracle Event Processing at its core to deliver real-time risk management information to banks, financial institutions, and utility companies and to meet strict Financial Services Authority (FSA) regulations
  • Reduced, by up to half, the amount banks are legally required to deposit overnight to cover any potential losses, with accurate, up-to-date risk information, releasing billions of dollars for overnight trading in other geographic regions
  • Provided banks with a real-time audit trail to fully explain profit and loss and value at risk volatility and to pin-point the cause, significantly reducing human involvement and therefore reducing the cost of exception handling through the middle and back office
  • Enabled banks to drill down into data to present a real-time risk assessment, allowing banks to immediately understand status and thereby improve decision-making during volatile market conditions, a process that previously could take up to two days to complete
  • Extracted data from up to 50 systems in each bank—including data fed from Bloomberg and Reuters—to assess the global profit and loss account in real-time and determine the bank’s exposure to risk
  • Cut implementation time from a typical three year risk transformation program for a comparable custom-built solution to between three and six months by implementing RiskIT

Why Oracle

ProveIT was confident that running its risk management system on Oracle Event Processing would deliver an easy-to-integrate solution that would meet its financial services customers’ specific demands.

“Most customers have Java-based middleware, and with Oracle Event Processing we can not only deliver a faster, smoother integration into existing systems, but also provide real-time insight into complex trade scenarios at banks. Similar products from other vendors are built on C++ or native languages which would require further integration and longer implementation cycles. Oracle Event Processing was the obvious choice,” said Mark Bruce, technical director, ProveIT Ltd.