IBM SALES AND DISTRIBUTION
Solution Brief
Highlights
● Meet prudential requirements while
optimizing risk management cost-
effectiveness
● Gain state-of-the-art risk management
capabilities
● Integrate individual risk management
capabilities into an enterprise
framework
● Achieve higher levels of portfolio opti-
mization and business profitability
● Create a firm-wide risk management
culture
Understand risk. Make decisions based on your firm’s affinity for it.
Financial risk solutions for
financial services
The current global financial crisis underscores the importance of
maintaining high standards in financial risk management. To improve
practices, financial institutions must find balance between commercial
success and business sustainability. Increase the quality, transparency
and timeliness of risk information. Proactively manage risk exposure
and liquidity. Understand complex risk effects such as contagion and
correlation. These issues will likely be translated into new regulation.
Modern financial risk management requires a unified approach to meet
the challenges.
In order to make and support decisions consistent with your firm’s risk
appetite, you must understand your firm’s risk exposure across multiple
lines of business—at any point of time and in a timely fashion.
IBM financial risk management solutions can help you:
● Design, implement and enhance solutions to meet prudential
requirements, such as Basel II and Solvency II, while optimiz-
ing risk management cost-effectiveness.
● Gain state-of-the-art risk management capabilities for each risk
category, including market, credit, counterparty and liquidity.
● Integrate individual risk management capabilities into an enter-
prise framework supported by unified reporting and data man-
agement software, as well as a high-performance infrastructure.
● Connect risk, finance and business information systems to
enable risk-based management and decision support, and con-
sequently achieve higher levels of portfolio optimization and
business profitability.
● Create a firm-wide risk management culture that is ingrained
in the business strategy and throughout the entire product
development life cycle.
IBM has a proven track record in helping financial companies address
increasingly complex financial risk. Our capabilities and expertise are
globally recognized by analyst and research organizations. IBM risk
management solutions cover a range of services, from risk strategy
development, execution and management, to business intelligence,
security and data management.
IBM SALES AND DISTRIBUTION Understand risk. Make decisions based on your firm’s affinity for it.
Solution Brief

Example offerings include:

● Risk Data Rationalization © Copyright IBM Corporation 2009

Understanding the data sources, from across multiple business areas,
IBM Corporation
which feed your risk decision analytics to establish a single source of
Route 100
truth, is a critical need across all areas of risk in your business. IBM can Somers, NY 10589
help you deploy an aggregated view of trusted data to simplify and
Produced in the United States of
streamline data pertinent to risk management. America
● Risk Insight and Control October 2009
Once rationalized, and then updated on a consistent and auditable man- All Rights Reserved
ner, IBM can help you present an integrated enterprise wide view of IBM, the IBM logo and ibm.com are
risk based on real-time or near real-time data and analytics. trademarks or registered trademarks of
● Risk Optimization, Modeling & Scenario Analysis International Business Machines
Corporation in the United States, other
With data and analytics in place, leveraging your trusted data source, countries, or both. If these and other
IBM can help you integrate risk, finance and performance management IBM trademarked terms are marked on
and leverage a predictive approach to business modeling, scenario their first occurrence in this information
analysis, planning and strategy execution. with a trademark symbol (® or ™), these
symbols indicate U.S. registered or
● Credit analytics for financial services common law trademarks owned by
There is risk—and then there is smart risk. IBM can help banks become IBM at the time this information was
smarter about risk, understand industry-wide impacts, generate more published. Such trademarks may also be
revenue, build meaningful relationships and make more accurate lend- registered or common law trademarks in
other countries. A current list of
ing decisions. IBM trademarks is available on the
● Scalable Architecture for Financial Reporting Web at “Copyright and trademark
Finance transformation starts with systems transformation. IBM offers information” at ibm.com/legal/
an effective framework to help you manage millions of individual cus- copytrade.shtml

tomer and contract ledger entries—each described by hundreds of Other product, company or service
required attributes—for today’s financial reporting. names may be trademarks or service
marks of others.

To help you enable projects in the Financial Risk space, as well as other areas
of Risk Management in Financial Services, the IBM Banking Industry
Please Recycle
Framework has been established to combine the power of IBM software with
banking-specific software extensions, solution accelerators and best practices, to
help you deploy financial risk solutions faster and at lower cost and risk. The
IBM framework can help you migrate to a more strategic and flexible technol-
ogy architecture that is aligned with the needs of your business, one project at a
time. Take advantage of a structured approach that combines best-in-class
industry assets, repeatable software patterns and IBM Business Partner offer-
ings to take a holistic approach to monitoring and managing financial risk,
financial crimes detection and prevention, operational and IT risk, and gover-
nance and compliance.

For more information

To learn more about financial risk solutions for financial services, please
contact your IBM representative or IBM Business Partner, or visit:
ibm.com/banking/risk

IIS03002-USEN-00