Oracle Financial Services Market Risk

The increase of proprietary trading in many banks has heightened the need for adequate systems to measure, monitor, and reserve capital against potential losses arising from adverse changes in market risk factors.

Therefore, organizations need a clear view of the balance between their risk and returns, enabling them to effectively develop their business strategy while offering operational value to the stakeholders.

Oracle Financial Services Market Risk offers extensive and robust computations to enable institutions to effectively evaluate and manage their market risk across the enterprise. Institutions can leverage this data to estimate market risk through risk estimation measures such as Value-at-Risk (VaR) and Conditional Value-at-Risk (CVaR). These risk measures are estimated based on user-defined parameters (such as confidence level horizon, number of iterations, and decay factor) and can be used for both risk management and regulatory reporting.

• Multiple interest-rate models
• A user-defined portfolio
• Variance-covariance estimation
• Seasonality adjustments and decay-factor optimization
• Bootstrapping for generation of zero coupon yield curve
• Risk preserving cash flow allocation procedure
• Exhaustive instrument coverage
• Calibration functionality
• Multi-currency and regulatory reporting
• User-defined parameters

• Gain the ability to assess risk at any level of granularity
• Estimate portfolio risk across multiple models
• Comply with Basel II Market Risk requirements
• Utilize robust risk calculations
• Validate market risk estimates
• Estimate risk under extreme scenarios
• Comply with multi-jurisdictional reporting
• Analyze market trends
• Improve capital management and strategic planning