FusionRisk LimitsSoftware overview

Profit from limits

Act within your bank’s risk appetite

Axis Bank headquartered in India is a prime example of a bank that has benefitted from Misys FusionRisk capabilities: Misys provides Axis Bank with an enterprise-wide market risk system capable of integrating with multiple trading systems and consolidating all economic position information in a single place. It offers the bank a good platform to meet its needs such as VaR, Global Limits and compliance with internal model requirements.

For sure, fully automated limit management often remains a myth. Firm-wide visibility of all limits and exposures still needs a final element of manual intervention, reducing control and introducing delays. And when a top-down strategy change or a quick response to sudden market change is needed, this can present a real challenge to many financial firms, often leading to lost opportunities.

The answer to this challenge is to find an extensible, flexible solution that enables you to profit from such limits.

Bringing visibility of exposures and business agility to banks’ firm-wide trading and banking operations, Misys FusionRisk Limits can drive a new level of profitability.

It gives risk managers, treasurers, traders and commercial bankers the confidence that all exposures are meticulously tracked in a timely manner and stay within the banks agreed risk tolerance levels at all times.

Widen your limits horizon

With a better view of limits, banks can overcome a significant barrier to profitability.

Source: Lepus 2013 – Bank wide limit management survey

62% 50% 39%

Obtain overallexposure once a day

Of banks involve manual processesfor a bank-wide

limits view

Need more than 6 hours to get a bank-wide view

of limits

3Misys FusionRisk Limits | Software overview

The activities of this Russian bank span all financial markets. And its overall assets, equity, customer accounts and loan portfolio have made it one of Russia’s leading banks. In recent years, its corporate and retail client base has grown rapidly and the wide range of services it is offering to its customers includes lending, payments, account services, foreign exchange, cash handling, custody services and investment banking.

In line with its strategic review and aim to set new technology standards, the bank approached Misys in January 2014 to rationalise its current limits functions and improve the automation and visibility of its global exposures.

The bank started implementing Misys FusionRisk Limits across its FX trading system, and its treasury operations. These initiatives slashed average limit reporting times from six hours down to just 15 minutes.

The bank then added Misys ultra-fast pricing engine to calculate its market risk and credit with incremental PFE and CVA, further accelerating risk aggregation. Once the trading book operations were completed, the bank extended FusionRisk Limits further to the banking book to capture a true global picture of all exposures.

After only 10 months, the collaboration with the FusionRisk team has started reaping rewards, securing a scalable future for the banks’ operations by swiftly processing big data and all limits and global exposures.

FusionRisk Limits in action

A Russian Bank achieved its strategic goals by working in partnership with the FusionRisk team to rationalise its limits functions. The new FusionRisk Limits solution drives speed and accuracy, with risk information that’s reliable and immediate.

4 Misys FusionRisk Limits | Software overview

Providing the complete customer view that optimises profitability, credit decisioning and control

The FusionRisk Limits Advantage

With FusionRisk Limits, you can break through organisational and system silos and generate an integrated and consistent view by counterparty, legal entity, country or industry.

Better visibility: The solution provides bankers with full visibility of their exposure, limit utilisation and breaches, along with capital and funding consumption across all instruments and commitments. This facilitates granular optimisation of profitability, resource and limit allocation.

Integration: FusionRisk Limits integrates directly into multiple trading and banking systems significantly improving limit excess management and control over limit reserving and drawdown across customers, products, industries, business lines, and systems.

Automated tracking: The system automatically tracks the direct and indirect impact of new transaction on limits, ranging from counterparty exposure limits through industry and geographical limits to balance sheet limits such as capital and funding ratios.

The impact on limits requiring complex calculations, such as those based on Value at Risk (VaR) or Expected Shortfall, can be calculated within seconds on a pre-commitment basis, using graphical processing unit (GPU) and other advanced computing technology. Limits can be defined flexibly on any metric or measure of exposure.

One consistent view: The solution allows you to develop a single, consistent view of exposure and limit utilisation, with out-of-the-box integration with Misys solutions for lending, transaction banking, payments, treasury, and capital markets, coupled with easy integration with other third party or in-house software. This means banks are now able to embark on a gradual and incremental technology and architecture change programme, rather than committing to a risky and costly “rip-and-replace” strategy.

5Misys FusionRisk Limits | Software overview

With risk moving from post to pre-trade, the need for upfront risk mitigation is greater than ever. Specific and faster risk monitoring and reporting is needed against business lines, single entities, countries and industries and trading desks.

With the increase in trading speed and automation plus the need to handle high velocity “big data”, a new generation of limit management is required to stay in control of risk tolerance and enable more financial transactions.

Misys FusionRisk Limits helps you make better strategic decisions and proactively manage overall business profitability.

It enables you to rationalise your limits infrastructure, and combines all limits and exposures information at high speed using an ultra-fast and flexible limits computation engine.

Product capabilities

“One of the key requirements for our treasury operations is the delivery of real-time risk management including limits monitoring and value at risk (VaR) reporting across all asset classes.”Sami AinousHead of Treasury and Trading Technology at Noor Islamic Bank

Misys Fusion Risk Limits offers real time risk insight and decision making – from trading to commercial banking

6 Misys FusionRisk Limits | Software overview

Regulation

Bank-wide limit measurement and monitoring

Shared componentsScenario generation, pricing and calibration, real-time reporting, data management,

high performance risk analytics and task-oriented workflows

Limits Advanced Measures

Balance Sheet Management

FusionRisk Insight

FusionBankingLoan IQFusionBankingLoan IQ

FusionBankingEssenceFusionBankingEssence

FusionInvestFusionInvest

Non-Misystrading systemsNon-Misystrading systems

Non-Misysbanking systemsNon-Misysbanking systems

Data sourceData source

FusionCapitalFusionCapital

› Market risk (VaR)

› Advanced credit (PFE/CVA)

› Basel capital

› Regulatory reporting

› National discretions

› Asset liability management

› Liquidity management

› Fund transfer pricing

› Global cross asset limits

› Multiple limit types

› High performance pre-deal check

FusionFab

ric Co

nnect

FusionRisk

Misys FusionRisk Limits enables bank-wide monitoring of limits and exposures

7Misys FusionRisk Limits | Software overview

Limits across trading systems: Often limits need to be monitored across several trading systems, adding to the complexity in the front office. FusionRisk Limits allows you to access essential limits information across trading systems, including real-time feeds, trades, positions, P&L, pre-deal checks before/after, and other relevant risk and instructions.

Open data sources: FusionRisk Limits’ real-time updates can be complemented with static information to enrich the calculations and data can be accepted “as-is”. Other external limit sources can also be plugged in.

Exposure management and monitoring: FusionRisk Limits provides high performance limits calculations (real-time pre-deal check) including standard limits and incremental PFE and CVA. The solution covers various limit types (credit, market, concentration and sensitivity limits) across trading and banking. More limits can be defined as needed.

Powerful CRO view: Limits and exposures can be monitored on a 24 hour-basis on a flexible risk dashboard that allows chief risk officers to view key limits and exposure information on an aggregate level as well as conduct deep drill-down analysis as needed. Information can also be easily shared with other relevant staff within the firm.

Workflow: The workflow capability is highly flexible, with user-definable Business Process Management (BPM), authorisation/escalation features and email templates. It also enables access triage and access workflow.

Limit enquiry: Limits can be queried in real time on a user-defined interface. Results can be further sliced and diced with drill downs to better understand the source of any breaches.

Reporting: Includes utilisation history and audit reporting. SQL reporting can also be provided.

Immediate limits breach notifications: FusionRisk Limits provides plug-in notifications, notification mapping and concurrent notifications in real time.

Technology highlightsFusionRisk Limits offers an open, high performance and service-oriented limits rules engine for an ‘end-to-end’ limits management process across multiple trading and banking systems in real time.

• Warehousing: Standard warehousing and big data repository are covered.

• Integrates seamlessly with your existing infrastructure: Connectivity to in-house or third-party software makes it possible to compute and aggregate risk metrics from the individual trade to board-level aggregation.

• Real time computation of exposure and capital usage: Removing batch jobs allows traders to make more risk-aware trading decisions and enables risk managers to proactively manage risk on an intra-day basis.

• Reduce your cost footprint: The ultra-fast limits engine uses scalable and cost efficient Complex Event Processing technology and leverages our fast GPU risk analytics platforms to provide instantaneous exposures and limit monitoring.

8 Misys FusionRisk Limits | Software overview

FusionRisk Limits - Dashboard

Navigation. List view of all limits, ranked by utilisation.

Limit breakdown for the current day, indicating positive or negative contributions to the limit.

Limit utilisation over time.

Limit value over time.

9Misys FusionRisk Limits | Software overview

“We received good technical support from Misys during the implementation and we are delighted that FusionRisk works exactly as expected.”Fuad MohamedVice President Applications, Group IT, Emirates NBD Group

Customer supportMisys clients benefit from the expert knowledge of 1000+ resources worldwide whose primary function is to provide professional, scalable software support and maintenance.

Deep domain expertise: Our technical and application support people have strong industry and product knowledge with continuous technical and industry training programs to ensure that Misys support teams can meet your evolving business needs.

Scalable support model: As a Misys client, you can choose from a standard, professionalised support model or a specialised, premium support package depending on your needs. Because Misys support has a broad, global footprint that operates in all time zones and regions, Misys teams can scale to your requirements.

Valuable advisory services: Our Systems Advisory Group (SAG) provides system reviews to help clients understand how to use their Misys systems more effectively and derive maximum value from their applications.

Best-practice delivery The Misys delivery model is incorporated into our entire product lifecycle. We leverage best practice business processes in the design, development and quality assurance of all of our products. While we acknowledge that one size doesn’t fit all in financial software, we know that a delivery approach that focuses on industry proven best practice process models helps our clients to save costs and benefit from the institutional knowledge Misys has developed across thousands of successful implementations. It means:

• Faster implementation: Repeatable delivery means projects are shorter and more predictable. • Reduced TCO: Clear focus avoids unnecessary expenditure. • Less risk: A standard, proven approach means many risks have already been mitigated.

Centre of excellenceCo-located with our development teams, the 200-strong Misys Service Delivery Centre ensures that we share best practice both internally and with partners. It enables us to refine implementations offsite before taking them back to the client.

SAG reviews have helped more than 80% of participating customers to identify ways to utilise their Misys software more effectively and use more system functionality.

Professional services and customer support

An industry proven best practice approach – that’s the guiding principle of our professional services and support model. Misys clients benefit from our long track record of successful implementations.

10 Misys FusionRisk Limits | Software overview

Proven award winning solutions

CIR Risk Management Awards 2014FusionRisk wins “Best use of technology in risk management” in November 2014

FS Tech Awards 2013Misys FusionRisk wins the “Risk management software of the year” award in April 2013

Risk Technology Rankings 2013Misys wins enterprise-wide risk management category andseven others in the 2013 Risk Technology Rankings

AsiaRisk Technology Rankings 2013Misys wins overall category and 7 others in the Asia Risk Technology rankings 2013

Risk Technology Rankings 2012Misys wins overall category and 7 others in the 2012 Risk Technology Rankings

AsiaRisk Technology Rankings 2012Misys wins overall category and 7 others in the Asia Risk Technology rankings 2012

Structured Products Technology Rankings 2012Misys wins Risk Management – Collateral Management and 4 others in the Structured products 2012 Awards

About Misys Misys is at the forefront of the fi nancial software industry, providing the broadest portfolio of banking, capital markets, investment management and risk solutions available on the market. With more than 2,000 customers in 130 countries our team of domain experts, combined with our partner eco-system, have an unparalleled ability to address industry requirements at both a global and local level. We connect systems, collect data and create intelligent information to drive smarter business decisions. To learn more about how our Fusion software portfolio can deliver a holistic view of your operations, and help you to solve your most complex challenges, please visit misys.com and follow us @MisysFS on Twitter.

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