Corporate & Commercial Banking Risk Management and Operational Risk

Risk Management

Ten years ago, major financial institutions might have used one vendor for default probabilities, another vendor for market risk, still another vendor for asset and liability management, and a fourth vendor for transfer pricing and performance measurement.

Since 1999 Unisys has worked in partnership with the Kamakura Corporation to provide both an IAS 39 and Basel II compliant application for the management of credit and market risk. Kamakura’s KRM application is the first software package in the world that combines credit risk, market risk, asset & liability management, and performance measurement.

Operational Risk

The regulators continue to develop their thinking on how financial institutions should manage their operational risk exposures yet major losses continue to occur. Rating Agencies have turned their attention to how well operational risk is managed and shareholder groups call for greater transparency about how their companies are managed. 

Against this background, financial institutions are seeking better methods to manage their operational risk in a way that makes sense for their business and also satisfies interested third parties. 

The recent regulatory focus on managing operational risk means that the approach of ‘best practice’ is changing to ‘required practice’. Unisys can help to implement an operational risk framework with tools and services that manage a wide spectrum of risk.