One lesson from the financial crisis is that risk - in all its guises - is terribly difficult to grasp fully but the consequences for not doing so can be severe. At large financial institutions in particular it's vital to have a holistic view of all kinds of risk across different operational units and different geographies in order to remain within internally set risk parameters and to comply with stepped up regulatory rules.
In the wake of these market pressures, Oracle launched its latest version of Reveleus Market Risk in January, part of Oracle Financial Services Analytical Applications. The product helps financial institutions centrally manage all of their internal and regulatory market risk requirements - from risk measure estimation to stress testing to model validation and customized reporting. "We can combine different kinds of risks and stress it all together," says S. Ramkrishnan, CEO of Oracle Reveleus and Mantas products, Oracle Financial Services Software. "By breaking down the silos, we can bring fresh insight as well as flexibility and agility to address internal pressures and external pressures."
Dana Wiklund, a research director for the Financial Insights' Risk Management Advisory Service, says: "The key is the efficient use of data, looking across the enterprise and looking across the data to create a single truth of information from different sources of information. So this is a breakthrough over having a bunch of disparate solutions looking at different sets of data across the enterprise."
One of the most progressive users of Oracle Reveleus Market Risk is Bank of Montreal, which choose the solution to meet impending Basel II regulatory requirements. Using Oracle Reveleus, BMO standardized risk management across all lines of business and improved risk-profile management enterprise wide in nine months. The bank can now meet regulatory requirements, including Basel II, across different jurisdictions and has improved BMO's agility to adapt to new risk management strategies.