Alliance to bring together capability across the trading and banking book
21st June, 2004
London - Reuters (RTR:LSE), the global information company, and Reveleus a global provider of business intelligence and analytical applications for the financial services industry, have agreed on an alliance that will deliver an enterprise-wide view of risk for banks presently unavailable to the financial services industry. The joint solution will provide the customer with a single view of risks undertaken across the bank, from the trading room to risk administration and operations.
The alliance will bring together Reuters expertise in the trading books and Reveleus’ capability in analytical applications for the banking book.
The solution addresses key issues for the financial services industry.
· From a data perspective, it allows an enterprise-wide risk view that includes credit, market and operational risk and allows monitoring, reporting and limits management across the banking and trading book.
· From an analysis perspective, it addresses the challenges banks face with an array of computational models for risk and regulatory capital computations.
· And finally from a reporting perspective, it provides flexibility in viewing data with provision for comprehensive, standard and customized executive risk management reports.
The solution will be delivered through collaborative interfaces between Reuters Kondor Global Limits, Reuters Kondor Value at Risk and Reveleus Analytics for Risk. Present enhancements, already underway, will expand Reuters Kondor Global Limits coverage across both the trading and banking books. Reveleus Risk Analytics will feed off the limits from Reuters Global Limits, metrics from Reuters Kondor Value at Risk and data from the Banking book to provide analytics across Credit, Market and Operational Risk.
"Banks are looking for solutions that can address the risk management needs of both their banking and trading books," comments Michael Haney, senior analyst with Boston-based research firm Celent. "However, historically vendors have focused exclusively on ALM products, market risk management tools, or credit risk management systems."
"A combined approach would better meet the requirements of banks looking to migrate towards an enterprise risk management framework and incorporate risk management into their business and financial decisioning process," explains Haney. "Leveraging their expertise in data management, real-time risk monitoring, and analytics, Reuters and Reveleus are joining forces to address this growing market trend."
Alexander Hungate, Chief Marketing Officer at Reuters, comments, "The tie-up between Reuters and Reveleus meets the market need for an enterprise-wide view of risk. It also fits with Reuters alliance strategy of teaming up with other companies that offer complementary services or that creates new routes to market for our products."
S Ramakrishnan, Chief Executive Officer at Reveleus, adds, "This joint risk solution draws its strength from the collaborative capabilities of two specialized products. Playing off our respective core competencies, we are confident that this joint solution will provide our customers with powerful new ways to measure and manage capital, and to leverage risk as a powerful tool for strategic decision making."
Reuters brings to the alliance expertise in trading books, market risk and real-time limits management. Reveleus, a business of i-flex solutions, brings skills and expertise in analytical applications for the banking book, credit risk and Basel II.