According to a recent report from the Tower Group, âTechnology Challenges for Basel II- Compliance or Opportunityâ, operational losses are estimated to cost financial institutions over $50 billion a year. Thus, a comprehensive solution to operational risk management is becoming increasingly urgent, with regulations like Basel II encouraging innovation.
The SunGard/Raft partnership responds to the industryâs need for a solution that combines integrated operational risk management software with comprehensive consulting services and reliable project management and solution delivery. SunGard also offers operational risk management customers a resilient business continuity option and a path to integrated, enterprise-wide market, credit, interest rate and operational risk management.
Raft Radar is an award-winning solution used by financial institutions worldwide for the capture, tracking and eventual reconciliation of loss events with a process, risk and control environment within an organization. Raft Radar integrates the four key elements of operational risk management; control self-assessment, key performance indicators, incident management, and scorecard based capital allocation. Its architecture provides functionality and scalability for growth and acts as an aid to straight-through processing.
David Priestley, chairman of Raft International, said, "The partnership with SunGard demonstrates our long-term commitment to this industry, which has seen companies and products rise and falter at an alarming rate. We have the vision and development capability to deliver robust products. The SunGard partnership provides a global reach, strong, focused sales and marketing capability and the security of having one of the largest risk management software companies behind our solution."
Bill Popp, executive vice president, SunGard Trading and Risk Systems, said, "Formalized operational risk management is a new discipline for most financial institutions. Best practices are just now emerging and regulators continue to refine their overall requirements. Financial institutions are searching for a solution from a trusted vendor that understands the entire enterprise risk picture including market and credit risk. SunGard now provides a complete operational risk solution that helps customers solve their regulatory requirements and provides a reliable picture of their operational risk exposures. SunGardâs financial staying power and global footprint assures customers of a committed, long-term partner, protecting their initial investment and helping them to realize incremental returns on their investment. SunGardâs EnFORM Consultingâs track record of on-time, on-budget implementations reduces concerns over vendor delivery risk."