The new solution helps financial institutions facilitate compliance – including compliance with Basel III liquidity provisions – and promote sound operating practices by enabling them to clearly identify and assess enterprise-wide liquidity risk under normal and extreme market conditions, and develop strategies to effectively bridge liquidity gaps.
With Oracle Reveleus Liquidity Risk Management, banks have a single solution that helps to ensure compliance with new and emerging regulatory requirements – including Individual Liquidity Adequacy Assessment Standards of the Financial Services Authority (FSA) and Principles for Sound Liquidity Risk Management and Supervision of the Bank for International Settlements (BIS) – as well as an institutions’ own internal risk requirements.
With Oracle Reveleus Liquidity Risk Management, banks can identify and assess liquidity risk under business-as-usual as well as stressed business conditions. The solution helps centrally define and manage a comprehensive range of behavior assumptions for flexibility in designing stress scenarios and enables banks to specify conditions at any level of granularity.
Oracle Reveleus Liquidity Risk Management is designed to work with existing asset and liability management (ALM) systems, like Oracle Financial Services Asset Liability Management, already used by leading global institutions. A single repository of shocks and scenarios ensures definition consistency and enables enterprise-wide stress testing for comprehensive visibility.
The product also supports banks’ efforts to manage liquidity hotspots, by enabling them to define, apply and assess multiple counterbalancing strategies and contingency funding plans to identify the best approach for bridging liquidity gaps. Existing Oracle Financial Services Analytical Applications customers can further leverage their existing Oracle investments with this new application engineered to work with their existing risk and performance applications from Oracle Financial Services as well as other third-party solutions.
To enable detailed analysis of liquidity risk, Oracle Reveleus Liquidity Risk Management features a comprehensive set of pre-built reports and dashboards covering all aspects of liquidity risk management, including FSA-specified reporting templates.
Oracle Reveleus Liquidity Risk Management is part of Oracle Financial Services Analytical Applications including Oracle Reveleus Basel II, Oracle Financial Services Asset Liability Management and other risk applications which help financial institutions to measure and meet risk-adjusted performance objectives, promote a risk-management culture and mitigate the costs of regulation and compliance.
“All financial institutions, irrespective of current or potential regulatory requirements, should adopt a methodology across all business and technology activities that standardizes and integrates the management of risk data, calculations and reporting in order to understand the overall nature of risk exposures including correlations, dependencies and offsets,” says Doug McKibben, research vice president at Gartner. “A consistent and timely approach to enterprise data provides the intersection point for linking risk and performance management and centralizing decision-making processes for absorbing, limiting or transferring risks based on performance priorities.”
“In an era of increased regulatory requirements – including the onset of Basel III – and heightened shareholder scrutiny, financial institutions are rethinking their approach to liquidity risk management. They are seeking solutions that enable them to proactively and centrally identify and assess risk under many types of market conditions, and develop effective plans for closing liquidity gaps,” said S. Ramakrishnan, group vice president and general manager, Oracle Financial Services Analytical Applications. “Oracle Reveleus Liquidity Risk Management provides banks with the comprehensive information and insight required to efficiently and effectively focus on managing liquidity risk to the satisfaction of regulators, customers and shareholders alike.”
Oracle Financial Services Software Limited (referred to as "Oracle Financial Services Software") (Reuters: ORCL.BO & ORCL.NS) is a world leader in providing products and services to the financial services industry and is a majority owned subsidiary of Oracle. Oracle (NASDAQ: ORCL) is the world’s most complete, open and integrated business software and hardware systems company. For more information, visit www.oracle.com/financialservices
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