Investment Bank DrKW wins Best Risk Management Strategy award with help from raft radar

Investment Bank Dresdner Kleinwort Wasserstein (DrKW) has won 'Best Risk Management Strategy’ in The Banker magazine’s 2003 Awards for its pre-emptive efforts in the area of Operational Risk, where it is supported by the raft radar system.

DrKW has worked with Raft International, the leading Risk Management solutions provider, since initiating a new operational risk management programme in 1999. Together they developed an innovative software solution to automate loss data collation and operational risk reporting for the bank. Known today as raft radar, this application is now used by DrKW on a global basis across all sales, trading and settlement operations. The system is near real-time and has over 1000 staff users.

Key features include that specific deal and profit/loss calculation algorithms are in place for cash and derivatives products, as well as an interest claim and funding cost engine for settlement and cash management. For other products and non-trade related incidents, a free-form profit/loss calculation engine allows for multi-cause loss explanation for all Basel II risk event types.

Last year, Raft International and DrKW then also added key risk indicator and comprehensive reporting functionality into raft radar. This means the database offers the ability to drill down from high level management reports into the details of a specific risk exposure or loss event.

Jonathan Howitt, Head of Operational Risk at DrKW, comments "We have put a lot of effort into getting to where we are today in operational risk management and are delighted The Banker has recognised this. In particular, the judges were impressed by the automated nature of our information process which we have achieved with the help of raft radar and which contrasts with the unstructured spreadsheet and email flows sometimes seen elsewhere in the industry. The fact we have a centrally based system for data tracking and measurement from across all areas of our business globally was also a factor in our success."

He adds, "Supported by raft radar, our aim has been to combine both quantitative and qualitative information to take operational risk beyond pure reporting into hands-on risk management. We believe we are genuinely well advanced in this respect. "

Raft International commercialised raft radar from the components of the DrKW solution in 2001 in order to offer a new standard tool to the financial services industry for measuring and managing operational loss data

raft radar is now used by some of the largest Financial institutions in the world in both Commercial Banking and Asset Management institutions. It supports all of the five key disciplines of operational risk via an integrated, scalable web based architecture.

Gerry Wilkinson, Operational Risk Director at Raft International comments, "This award confirms that DrKW has set a benchmark in the area of operational risk which others must follow. We are pleased to have contributed to this model approach. "

The Banker magazine announced the results of their 2003 awards in their September issue and said of the Best Risk Management Strategy winner "DrKW is evidently at the forefront of risk management and has set a high precedent for others to match in the area of operational risk management."

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