Risk Management

11:56 AM
Connect Directly
Facebook
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

HSBC Goes Live With Liquidity Risk Calculation From FinArch

The solution provides HSBC with a common data architecture in which to store, manage and enrich data from all parts of the business, according to a release.

HSBC has selected Financial Studio from FinArch to deliver systems support for Liquidity Risk Calculation and Reporting.

The solution provides HSBC with a common data architecture in which to store, manage and enrich data from all parts of the business, according to a release.

Data is enriched through a sequence of calculators, addressing valuations and cash flows, Liquidity Risk, Gap Analysis, Concentration Risk and Ratio Monitoring.

FinArch's Simulation Engine caters for the stresses prescribed by the UK FSA as HSBC can stress their Liquidity Risk measures across multiple scenarios, such as Rollover, Balance Sheet Growth, Default, Prepayment, Devolvement, Maturity, Haircuts and Interest Rates.

HSBC has also put in place a pan-European Liquidity Risk measurement reporting solution using Financial Studio.

"The solution meets our needs now and is extendible to other domains of liquidity risk management and reporting in other jurisdictions, not only the UK," says Mike Doherty, head of asset and liability management, HSBC EU.

Financial Studio's Risk Return Framework covers the measurement and management of all risk types.

In addition to liquidity risk, it covers credit risk, market risk and operational risk. The simulation engine and analysis engine work in parallel with all risk types, not just liquidity. In addition the framework provides comprehensive functionality for risk adjusted performance measurement and economical capital, including aggregation and allocation.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - July 2014
In addition to regular audits, the SEC will start to scrutinize the cyber-security preparedness of market participants.
Video
Inside Abel Noser's Trading Floor
Inside Abel Noser's Trading Floor
Advanced Trading takes you on an exclusive tour of Abel Noser's New York trading floor, where the agency broker known for transaction cost analysis, is customizing algorithms for the buy side, while growing its fixed income trading and transitions business.