KONDOR GLOBAL RISK RELEASE 3.6T - Misys

KONDOR GLOBAL RISK
RELEASE 3.6T
INTEGRATED CREDIT AND MARKET RISK MANAGEMENT
CONTROL
FORECAST
UNDERSTAND

Kondor Global Risk 3.6T
NEW OPPORTUNITIES, NEW CHALLENGES
Financial institutions are facing tougher regulations around credit and
market risk with tight deadlines for compliance. But complying with
regulations is just the minimum. Increasingly boards are placing pressure
on management teams to improve transparency, introduce best practice
and report risk on an intra-day and in some cases real-time basis.
However, delivering a consistent and timely view of global exposure
for the different aspects of risk across the business can be a challenge.
This is particularly true where financial institutions operate multiple
trading systems.
Banks are being pushed to anticipate and plan more effectively, so
comprehensive stress testing has become a top priority. At the same time
risk systems are struggling to handle increasing transaction volumes.
System rationalization is on still the agenda, with operational cost
savings as one of the key drivers.
Key Challenges
Greater system agility and speed
Businesses are demanding that IT responds
more quickly to develop new capabilities and
solutions in response to changing market
conditions and regulations.
Joined-up view over credit risk
Post crisis, there is a need for banks to have a
joined-up view over credit risk across their
business. Having a number of different systems
makes this a potentially costly problem to solve.
Rapid response to external events
Financial institutions have to anticipate and be
ready to respond more rapidly to external
events, such as the downgrading of a
counterparty.
Proactive risk management
Risk managers spend up to 80% of their time
gathering and collating data, leaving little time
for proactive risk management.
360 view over market risk
It’s no longer acceptable for financial
institutions to be exposed to unknown sources
of market risk.
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‘‘Increasingly financial institutions
are looking at ways to improve
transparency, introduce best
practice and report risk
intra-day and in real-time.”

Kondor Global Risk 3.6T
CONTROL, UNDERSTAND, FORECAST
Financial institutions are facing
tightened regulations around
credit and market risk management.
At the same time, senior managers
are showing a renewed interest
in risk management and are
asking increasingly challenging
and complex questions. There is
huge pressure on risk reporting
functions to deliver results while
simultaneously becoming more
flexible and responsive. However,
being able to aggregate and compute
risks consistently, flexibly, and on
demand is a complex challenge.
Kondor Global Risk (KGR) has been
designed to address these challenges.
It provides a single, integrated
product for the management of
market risk, credit risk and limits in
real-time.
Built with an open and flexible data model, KGR is
designed to operate on top of multiple front office
systems, with deep two-way integration – from
checking trade compliance in real-time, directly
from a front office screen, to sharing the front office
analytical libraries.
The latest release includes a groundbreaking risk
dashboard that enables risk managers to visualize
and understand information quickly. KGR doesn’t
just alert users to risk – it immediately explains from
where the risks originate so that action can be taken
to address them. Kondor Global Risk allows financial
institutions to make proactive business decisions
based on genuine risk intelligence.
Why choose KGR?
Intuitive and dynamic risk dashboard
The dashboard in KGR, with its powerful
analysis screens, provides a new, intuitive
way to visualize information and understand
its meaning quickly. An advanced data
aggregation engine allows users to look at
the information from different perspectives
and drill-down on areas of interest.
Use front-office analytical libraries in
risk reporting
Uniquely, KGR ensures data consistency by
using the actual analytical libraries developed
and maintained by the front office.
Credit and Market Risk engines in
one product
KGR delivers real-time access to all risk factors,
whether credit or market based, with the most
sophisticated analysis tools.
Sophisticated and flexible stress testing
KGR includes an advanced stress testing
engine that allows customers to model
exposures to different historical, event
driven and client specific scenarios over
any time period.
Highly flexible limits rules
KGR supports sophisticated limits rules that
allow users to structure any kind of limit,
internal business hierarchy, and counterparty
hierarchy. It also allows risk managers to
re-allocate limits on the fly.
Powerful data aggregation and analysis
engines
KGR offers unrivalled power and flexibility to
build and run the most complex scenarios;
users can update data and re-run only the
relevant parts of a report. These elements are
then automatically rolled up into the overall
result without the need for time consuming
recalculations.
Open, flexible and generic data model
Our open and generic data model gives
customers the flexibility to model any
exposure using their own measures of risk.
It also allows them to simulate any banking
activity and to fully explore counterparty risks.
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Kondor Global Risk 3.6T
KONDOR GLOBAL RISK
VALUE PROPOSITION OVERVIEW
LIMIT
MANAGEMENT
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EXPOSURE/
LIMIT
MANAGEMENT
CREDIT LINE
MANAGEMENT
BASEL II
PRODUCT MODULES PROPOSITIONS
KONDOR
GLOBAL
RISK
CREDIT RISK
PFE
CVAR
MARKET
RISK
IMA MARKET
RISK
MONTE
CARLO VAR

Kondor Global Risk 3.6T
Get a complete view over credit
risk across the business
KGR provides open, flexible web service APIs that
can take inputs from multiple front office systems
to centralize the assessment of credit exposures.
Coupled with our comprehensive Credit Lines
Management functionality, this allows customers
to manage overall credit exposures across their
trading and banking books.
Address the growing need for more
sophisticated limit management
Thanks to our asset class agnostic data model, data
from any banking system can be centralized in KGR.
Our limits rule engine allows customers to structure
any kind of limit and internal business hierarchy or
counterparty hierarchy, and allows the dynamic
reallocation of limits on the fly. This means users
can implement limit management to suit the level
of complexity and flexibility their business requires.
Anticipate and respond rapidly
as external factors change
The advanced stress testing features in KGR
enable risk managers to simulate a downgrade
of a counterparty or a shift in risk factors, and
rapidly assess the true exposure of the bank.
Respond more rapidly to the
needs of the business with a single
integrated product
KGR has the range of functionality across market
risk, credit risk and limits management, and the
proven flexibility, to replace existing in-house
developed products – more than 200 customers
already use KGR.
KGR has been designed to be straightforward
to implement. Our team of experts work with
customers to deliver the exact solution they
require in months, not years.
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Kondor Global Risk 3.6T
Benefit from our knowledge of best
practice in emerging markets
KGR is designed to meet the most sophisticated and
complex of customer and local market demands.
Our in-house team of 360 certified professionals
has worked with market leading banks in all areas
of the globe. Our industry experts are based
in 48 countries, including India, China, Africa,
and the Middle East, allowing customers to take
advantage of our knowledge of best practice
in both developed and emerging markets.
Spend more time analyzing the
data and proactively supporting
the business
With KGR, users can update and correct data and
then re-run just the part of the analysis that needs
correcting, and the result rolls up into the overall
risk report automatically. So users can spend more
time analyzing the data, keeping an eye on what
traders are doing, and proactively investigating the
real drivers of risk.
Drill-down through the figures across
the business to get the full picture
KGR holds base data within the product and
retrieves, stores and aggregates this data in
a highly efficient way. Dynamic dashboards
allow users to drill down through the figures
right across the business, at lightning speed.
Put risk information at the fingertips
of traders
During deal capture, traders can check compliance
with all the business’ risk management rules in
real-time. This ensures that they have the necessary
information at hand to take advantage of
opportunities as they arise.
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Kondor Global Risk 3.6T
CORE COMPONENTS
REAL-TIME DATA
AGGREGATION PLATFORM
ASSET CLASS AGNOSTIC
DATA MODEL
Designed from the outset to accept and distribute data in real-time, KGR acquires, cleanses and
stores the total range of trade, market and counterparty data required for the analysis of market
and credit risk.
Built from the ground up to be asset class agnostic, KGR handles any instrument type and
enables the rapid on-boarding of new asset classes.
INTEGRATION API The comprehensive product API supports deep two-way integration with in-house and
third-party trading and banking systems. KGR is fully integrated with Kondor+.
DISTRIBUTED ARCHITECTURE KGR is built on a modular, distributed architecture to support multi-site, global
implementations.
CREDIT RISK AND LIMIT MANAGEMENT COMPONENTS
CREDIT RISK ANALYSIS ENGINE The highly efficient scenario analysis and stress testing engine delivers Notional, Replacement
Cost, PFE, Linear and BIS methodologies, supports credit migration techniques and meets
Basel III Economic Capital calculation and reporting requirements.
LIMITS RULES ENGINE A powerful rules builder to structure virtually any type of limit (including concentration limits),
using any combination of internal business hierarchy, counterparty hierarchy, country, industry,
rating, currency, instrument, user, and positions.
API FOR REAL-TIME LIMIT
MANAGEMENT IN THE
FRONT OFFICE
The KGR API supports deep, two-way integration with front office systems. Simulation functions
allow users to examine the effects of trades before they are placed, request on-line
authorizations to exceed a limit, with the credit manager then approving or rejecting
the request.
REPORTING Extensive reporting capabilities provide standard, custom and what-if reports. In addition
‘excess management’ functionality allows risk managers to quickly drill down to identify the
causes of a limit breach.
COLLATERAL MANAGEMENT KGR provides enterprise-wide collateral management using an automated workflow that
includes ISDA & CSA agreement margin terms, computation of margin calls, and a wide
range of other reports for better control practices.
CREDIT LINE MANAGEMENT KGR enables comprehensive and dynamic management of credit lines.
ADVANCED SIMULATION
CREDIT RISK MANAGEMENT
The Future Exposure engine provides a simulation tool to better estimate the potential future
exposure of the bank by computing Monte Carlo simulated market rates for risk factors.
A Counterparty Exposure Report displays exposures for a given counterparty versus time
for a given PFE profile, in gross and net terms.
CREDIT VALUE AT RISK The Credit VaR module provides advanced Monte Carlo simulation to model the impact of
counterparty default and ratings upgrades/downgrades on a portfolio. A Black-Scholes-Merton
default model and a Credit Metrics methodology based model are included.
MARKET RISK MANAGEMENT COMPONENTS
DYNAMIC RISK DASHBOARD
AND VISUALIZATION TOOLS
INTEGRATION API DEDICATED
TO MARKET RISK
MARKET RISK
ANALYSIS ENGINE
Intuitive and flexible analysis screens provide a real-time view of market risks, with lightning fast
slice-and-dice and drill-through to the underlying information. KGR incorporates a number of
intuitive dashboards include VaR and Present Value Explainers, VaR Reporting, Back Testing and
Stress Testing.
KGR provides a flexible API to enable rapid integration with third party and in-house developed
libraries used in the front office.
The highly efficient scenario analysis and stress testing engine provides historical and Monte
Carlo-based scenario generation and VaR calculation. A market data repository and flexible
scenario generation tools support all calculations and testing in order to respond to regulator
constraints. All analysis can be stored for future reuse or reference using KGR’s automatic
archiving functionality.
RATE MANAGEMENT MODULE KGR provides Market Data Storage for the management of wide range of rate types and risk
factors from any data source. Visualization and Control functionality delivers capabilities
including time series display, Gap Filling for missing data and Rate Exceptions
to manage inconsistencies of market data.
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MISYS RECENT MARKET RECOGNITION
NUMBER ONE TRADING SYSTEM
TECHNOLOGY PROVIDER
RISK TECHNOLOGY RANKINGS 2011
Number One Overall Trading System
Number One Pricing and Analytics – Equity
Number One Pricing and Analytics – Infl ation
NUMBER ONE RISK MANAGEMENT
TECHNOLOGY PROVIDER
ASIA RISK TECHNOLOGY RANKINGS 2011
Number One Overall Risk Management
Number One Trading System – Equities
Number One Trading System – Foreign exchange
Number One Trading System – Interest rates
Number One Derivatives pricing and risk analytics – Equities
Number One Derivatives pricing and risk analytics – Interest rates
Number One Derivatives pricing and risk analytics – Hybrids
Number One Support services – Implementation effi ciency
STRUCTURED PRODUCTS
TECHNOLOGY RANKINGS 2011
Number One Trading System – Equities
Number One Trading System – Interest rates
Number One Pricing and Analytics – Equities
ABOUT MISYS
Misys is at the forefront of the fi nancial software
industry, providing the broadest portfolio of
banking, treasury, trading and risk solutions available
on the market. With 1,800 customers in 120
countries our team of domain experts and partners
have an unparalleled ability to address industry
requirements at both a global and local level.
Misys and the Misys “globe” mark are trade marks of the Misys group
companies. Copyright© 2012 Misys. All rights reserved.
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STRUCTURED PRODUCTS
TECHNOLOGY RANKINGS 2012
Number One Trading System – Credit
Number One Trading System – Cross Asset
Number One Trading System – Foreign Exchange
Number One Trading System – Rates
Number One Risk Management – Collateral Management
BEST TRADING PLATFORM BACK OFFICE
ASIAN BANKER TECHNOLOGY AWARDS
LEADING SINGLE TECHNOLOGY
PLATFORM – PORTFOLIO, TRADING
AND RISK MANAGEMENT
HEDGE FUND JOURNAL AWARDS 2011
BEST RISK MANAGEMENT INITIATIVE
ASIA ASSET MANAGEMENT AWARDS
Misys was formed by the merger of Misys with
Turaz, which includes the award-winning Kondor+
product line. Combined they are able to address
all customer requirements across both the banking
and trading book businesses. Misys is the trusted
partner that fi nancial services organisations turn to
for help solving their most complex problems.
Find out more at www.misys.com