Trading book risk management:
Basel III and beyond

Enable real-time risk management for the enterprise

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IBM enables traders and risk managers to intelligently manage risk capital. Learn more

Take an integrated approach to risk management

IBM analytics solutions can help your bank manage financial risks in a more integrated way, with risk management solutions that will prepare firms to thrive in a financial crisis, and exceed the requirements of emerging financial regulations, such as the fundamental review of the trading book (FRTB) and SA-CCR.

A state-of-the-art CVA desk will be able to see all the risks that are inherent in that portfolio

Set the right price for market and credit risk on every trade

Algorithmics Integrated Market and Credit Risk

Algorithmics solutions from IBM provide real-time risk results to enable more effective, risk-informed decision making by both middle office risk managers and front office traders.

Trading book risk management

Solutions for your business

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Right price
for risk

Calculate deal-time exposures, xVA measures and market risk measures.

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Cross-asset risk
models and analytics

Rely on extensive instrument coverage.

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Trusted risk
data architecture

Simplify the data supply chain, lower costs and accelerate time to market.

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Qualify for internal model approval under Basel III and FRTB.

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Right price for risk

Alyson Bailey-Flynn.

Under Basel III and FRTB, banks are facing increased capital and funding costs, which is changing how traders make decisions on who to trade with and how to price trade. With IBM, the front office can do more business with a more efficient use of limits and a more accurate pricing of risks.

  • Traders can accurately calculate pre-deal incremental exposures, default and CVA capital, with virtually no compromise in trade execution time
  • Exposures are based on full multi-step Monte Carlo simulations that fully account for netting and collateral

Learn more Watch the video

Alyson Bailey-Flynn.

Cross-asset risk models and analytics

Analytics coverage.

Algorithmics Integrated Market and Credit Risk includes instrument coverage for more than 20 geographic markets and over 400 financial instruments including fixed income, foreign exchange, equity, credit, energy, commodity and derivatives markets.

Learn more Read the paper

Analytics coverage.

Trusted risk data architecture

Take risk out of the equation.

The Basel Committee Principles for effective risk data aggregation and risk reporting (BCBS239) is demanding that banks reform their risk data architectures. IBM can help simplify your data supply chain to increase transparency, reduce operational costs and enhance decision making that leads to more profitable outcomes.

Learn more Read the paper

Take risk out of the equation.

Capital optimization

Societe Generale.

With new capital buffers under Basel III and much higher regulatory capital requirements for the trading book expected under FRTB, there is mounting pressure on the return on equity of banks. IBM solutions can help your bank optimize the cost of capital and achieve a significant reduction in capital under Basel III.

  • Adopt more sophisticated risk modelling approaches to help your bank achieve internal model approval
  • Implement more efficient hedging of CVA VaR and reduce conservatism on measures like PFE and EEPE

Learn more Read the case study

Societe Generale - Front view of the building.

Basel III and beyond: Enable real-time risk management for the enterprise

Speaking as one

Learn why now is the time for banks to make a bold move towards smarter analytics that will yield competitive advantages for years to come.

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Model risk management

In this IBM-sponsored study, Chartis set out to understand the issues organizations face in managing model risk, and the strategies and best practices that can be implemented to address this increasingly important area.

Read the study

Governing risk data aggregation and risk reporting

Discover how IBM InfoSphere Information Governance Catalog can offer relief by helping banks establish trust and manage the source or lineage of key data.

Read the solution brief

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