Risk Management

11:46 AM
Connect Directly

IBM Boosts Risk Management Practice With Acquisition of Algorithmics

The $387 million purchase follows IBM's acquisition last year of risk management software provider OpenPages.

IBM is expanding its analytics portfolio through the acquisition of Algorithmics, a risk analytics company. The $387 million purchase is designed to help support IBM's analytics business, which is expected to reach $16 billion in revenue by 2015. Last year, IBM acquired OpenPages, a software provider that helps companies identify and manage risk and compliance activities across the enterprise through a single management system. Overall, IBM has invested more than $14 billion in this area in the last five years.

In a release, IBM said that through its acquisition of Algorithmics' analytics technologies, clients will now be able to measure and assess operational risk associated with lending processes, market and credit risk exposures. "Having this type of transparency and granular insight of financial risk in advance can help organizations meet new regulatory requirements," IBM noted.

Algorithmics is a member of Fitch Group, which is majority owned by Fimalac, a holding company based in Paris. "Today's economic environment demands that financial institutions have more cash on hand, a better understanding of their financial standing and the ability to deliver more transparency to stakeholders," said Rob Ashe, general manager, business analytics, IBM. "Combining Algorithmics' expertise with IBM's deep analytics portfolio will allow clients to take a more holistic approach to managing risk and responding to economic change across their enterprises."

Michael Zerbs, president and chief operating officer, Algorithmics, added: "It is increasingly important to deliver integrated solutions that provide an understanding of risk and enable effective decision support while meeting rapidly evolving regulatory requirements." Algorithmics' focus on credit, market and liquidity risk, as well as key customers in operational risk, will strengthen and expand IBM's risk consulting services.

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
Newest First  |  Oldest First  |  Threaded View
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
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.