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MKI Risk Wins Major Order from Bayerische Landesbank for Risk Management Solution

Bayerische Landesbank, one of Germany’s leading financial institutions, has licensed Risk Vision, MKIRisk’s integrated risk management solution for its global operations. The contract, signed at the end of November 2000, covers the purchase of RV Limits and RV Carma as components of a single integrated solution to support the bank’s objective of improving its credit and market risk management.

Bayerische Landesbank Girozentrale, which has its headquarters in Munich, was established in July 1972, following the merger between Bayerische Gemeindebank and Bayerische Landesbodenkreditanstalt. The bank, which is Germany’s fifth largest banking group, has an extensive network of branches in its domestic marketplace, in addition to international branches and representative offices serving clients in every major financial centre across the world.

The search for an integrated risk management solution began in July 2000, when Bayerische Landesbank reviewed a number of different systems. These were quickly reduced to a shortlist of three possible solutions, two of which were selected for more detailed assessment during a series of workshops.

Risk Vision was recognised as the bank’s preferred solution on the basis that MKIRisk’s product provided an integrated system covering management of both credit and market risk within a single package. Once Bayerische Landesbank had reached a decision on its preferred solution, a pilot Risk Vision system was installed at the bank’s Head Office in Munich for further comprehensive tests of the system’s functionality.

Risk Vision will eventually be rolled out to support credit and market risk management throughout the bank’s network of international branches, although initial installation will take place at Bayerische Landesbank’s Munich Head Office and at its branch in London, one of the bank’s most important trading centres.

Risk Vision provides a fully integrated, modular solution for market, credit and liquidity risk measurements, in addition to local and global management of limits and exposures across product lines. As well as providing intra-day multi-factor Monte Carlo simulations to support real-time credit limits management, the Risk Vision suite of applications also offers banks the facility to consolidate data from a variety of front or back-office systems.

MKIRisk, a leading supplier of integrated risk management solutions, is an operating division of Midas-Kapiti International (MKI). In addition to product development centres in London and Los Angeles, MKIRisk benefits from MKI’s extensive network of international branches, which are located in 29 countries around the world and provide comprehensive service and support to the company’s worldwide client base. MKI, which employs more than 1,800 staff, is the world's premier supplier of solutions to the global banking and financial services industry, with annual sales of more than £200m. The company’s product range includes solutions for wholesale and retail banking, treasury and capital markets, trade finance, private banking and risk management.

Misys plc, MKI’s parent and a FTSE-100 company, is the UK’s largest independent software products company and one of the world’s 10 largest suppliers of application software, specialising in the international banking and securities, US healthcare and UK insurance markets. In the year ended 31st May 2000, Misys achieved revenues of £709 million and operating profit of £130 million. The group currently has more than 5,700 employees worldwide.