Innovative solution covering the areas of ALM/FTP, Liquidity Risk Management and Liquidity Risk Stress Testing compliant to Basel III guidelines
The client is one of the largest banks in the Middle East with 66 branches in Saudi Arabia. Its international operations consist of a branch each in London, Qatar and Dubai, as well as a subsidiary that has 28 branches across major cities in Pakistan.
The client wanted to replace its legacy risk management system that had poor risk monitoring and risk management capabilities. Silo instances of the legacy system were making data consolidation and regulatory compliance difficult. The requirement was for a centralized regulatory reporting and risk management system with multi-region, multi-branch and multi-desk capabilities. The regulatory and risk reporting infrastructure needed to be revamped to ensure that the bank could remain competitive in a changing regulatory environment.
Intellect deployed its OneLRM solution to help the client achieve regulatory compliance and stress testing capabilities on par with the latest global standards. The implementation significantly improved the transparency of bank-wide liquidity positions and risk exposures. Position Reconciliation activity, which was previously being done manually, was automated to increase operational efficiency.
Centralized risk reporting and analysis was enabled through Integrated Data Management Architecture. Risk reports could be generated on the basis of projections/forecasts for proactive planning and risk mitigation. The solution’s Stress Testing framework enabled the management to make more optimal Contingency Fund Planning (CFP) decisions. Improved regulatory compliance was achieved by enhancing the regulatory reporting infrastructure to latest BASEL standards.