Algorithmics continues to be recognized as a leader in operational risk management

20 November 2009

Algorithmics, the leading provider of enterprise risk management solutions, today announced that it has been recognized by three research organizations, Chartis, Celent and Gartner.

The Chartis report on ‘Operational Risk Management Systems 2009’ placed Algorithmics in the top quartile.

Celent, in its 2009 report, ‘Enterprise Operational Risk Management, Compliance and Governance Solutions: Towards a Convergence End Game’, noted Algorithmics as one of three vendors leading the field.

Gartner, Inc, positioned Algorithmics in the Leaders Quadrant of its 2009 report, ‘Magic Quadrant for Operational Risk Management Software for Financial Services’. The Gartner Magic Quadrant positions vendors within a particular quadrant based on completeness of vision and their ability to execute on that vision.

John Winter, Senior Vice President, Operational Risk Implementation, Algorithmics, commented: "We are delighted that Chartis and Celent have recognized Algorithmics as a leading operational risk management systems vendor and that Gartner has positioned Algorithmics in the leaders’ quadrant of its report. At a time when international regulators are acknowledging the importance of operational risk within holistic risk management we have continued to innovate to provide our clients with a complete operational risk management solution with Algo OpVar.”

According to the Chartis report, a successful ORM vendor such as Algorithmics must offer a flexible technology structure, on-going innovation, scalable sales and marketing strategy, domain expertise and the ability to offer a “one-stop shop” for operational risk, credit risk and market risk solutions as part of an integrated proposition.

Cubillas Ding, Research Director and author of the Celent report, commented: “In technology selection exercises, financial firms are faced with a plethora of vendor solutions that emphasize different areas of focus – for instance, capital modeling vs. regulatory reporting focus; configurable, business unit specific functionality, as well as requirements to address non-risk users through audit and compliance capabilities. In recent solution assessments, we have observed firms also lean towards a bias on implementation and support capabilities. These factors constitute potentially strong points of divergence in strengths and weaknesses across the vendor landscape.

“Algorithmics, on balance, has demonstrated broad end-to-end functional capabilities, with operational risk capital modeling and data/content provision as differentiators”, he added. As part of this research, Celent analyzed 12 vendors and their governance, operational risk, and compliance (GORC) solutions using its ABCD analysis framework to present a comparative view of the vendor marketplace that visually represents four elements: Advanced technology, Breadth of functionality, Customer base, and Depth of client services.

According to Gartner, the Leaders quadrant “tends to be occupied by vendors with software applications that are addressing qualitative as well as quantitative aspects of risk management of ORM. These vendors have achieved a high level of market acceptance and enable a consistent view of operational risk across the organization as compared to separately designed and implemented risk calculation engines or audit, control and compliance reporting tools. Such vendors approach operational risk more comprehensively and holistically across the enterprise and link operational risk to CPM. They have robust organizational structures and professional services resources.”

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