Misys plc announced the launch of its enterprise market risk solution, Misys Risk, to enable financial institutions to measure, control and manage risk across multiple asset classes, instruments, portfolios and systems. The launch marks the first step in a multi-phase project to create a unified enterprise solution to address market, credit and liquidity risk in a single consistent framework.
Drawing on its deep expertise in developing risk management and trading systems, Misys has developed a front-to-back enterprise market risk management system designed for risk managers at sell-side and buy-side institutions, incorporating analytics, drill-down capabilities, limit and alert management and reporting. Misys Risk provides a single platform to efficiently manage and control the risks associated with trading activity. Integrated with the trading systems it relies upon for portfolio valuation, Misys Risk shares the same positions, models, valuations and pricing data with the front-office. This provides the ability to easily drill-down from an enterprise view of risk through to the trading desk level. It also ensures that relevant data is aggregated consistently, and that new pricing models can be introduced quickly. As a result, the time delays associated with capturing the risk exposure of new products is greatly reduced, allowing firms to capitalise on new business opportunities as they arise.
“Misys enabled us to implement a Basel 2.5 component for IRC in a very short timeframe without needing to disrupt our entire risk framework. The tight integration of the Misys Risk framework with Misys’ trading solution Sophis RISQUE enables us to capture all the risk sources in our portfolios, and to get new insights and risk figures easily,” Michele Bonollo, Head of IT, Risk Management at Banco Popolare, said.
“Where other systems may rely on complex architectures and disparate components, Misys Risk leverages existing front-office trading infrastructures, reducing the cost, risk and time of implementation. Misys Risk is designed to work closely with multiple front-office trading systems to provide one dedicated solution for all risk management functions.”
“The ‘new normal’ of risk management today will require firms to disseminate cohesive and usable intelligence related to a true firm-wide picture of risk. Hence, the traditional incongruity between market-facing units, risk, treasury and finance functions in relation to risk taking, risk control and risk mitigation activities will need to be more tightly orchestrated in a joint-up and ‘live’ manner at the point trading on a pre-deal basis, not after. It is imperative to link up with various front-line core systems, operational workflows and risk controls in a dynamic and cohesive manner,” Cubillas Ding, Director of Research Securities and Investments, Celent, said.
Misys Risk allows the user to access information from all processes in real time. Risk analysis for VaR, stress testing, scenario generation, portfolio “slicing and dicing” and limit checking can occur on demand. Scenarios are generated once and then used consistently as the single source across all systems. Drawing on real-time data, users get an accurate snapshot of their exposure throughout the day together with comprehensive pre-deal analysis, allowing for the optimal management of risk and reward. Capturing and reporting on all data happens quickly, easily and in a consistent fashion, drastically decreasing the cost of reconciling disparate information. This helps firms meet today’s risk management and regulatory challenges efficiently and cost effectively.
“The continued turmoil in financial markets is totally changing the way financial institutions manage their risk, with increased pressure to provide transparency for both shareholders and regulators alike. Misys Risk not only allows firms to provide that transparency, but it also allows them to improve operational efficiency, reduce costs and risk, enhance decision making and improve time-to-market for new business. The solution thus truly allows firms to capitalise on the optimal risk and reward paradigm,” Arnaud Vinciguerra, Operations Director of Misys Sophis, added.