Address capability gaps and adopt strategies to accelerate FRTB implementation

IBM provides a flexible, high performance risk infrastructure that combines IBM’s cognitive, big data and cloud technologies, with the industry’s most comprehensive risk analytics, including FRTB accelerators and aggregation tools, and FRTB governance and controls. This is underpinned by IBM’s strong track record for helping banks achieve regulatory compliance and outperform competition.

FRTB aggregation and analysis

A flexible, highly scalable and pre-configured FRTB reporting solution for rapid deployment with a bank's existing systems. It allows early analysis to help accelerate overall FRTB implementation by highlighting any capability gaps.

FRTB models

An extensive library of shared risk models offers adaptive simulation options for banks to compute a much higher volume of analytics without dramatic increases in hardware.

FRTB model risk governance and controls

Automate risk model validation in adherence with FRTB requirements, such as the identification of modellable and non-modellable risk factors.

Reduce risk with smarter strategies

FRTB aggregation and analysis

IBM Algo Aggregation for FRTB Reporting is a flexible, highly scalable and pre-configured FRTB reporting and analysis solution. It is designed to be integrated with a bank’s existing infrastructure for both speed and lower costs of implementation. A quick set up time enables a bank to start early analysis and impact studies on real production data. This helps accelerate the overall FRTB implementation process by highlighting any infrastructure gaps which need to be addressed and providing a better understanding of the impact of FRTB on their business, profitability and capital.

FRTB risk models and analytics

IBM helps banks meet FRTB requirements, including expected shortfall calculations for Internal Models Approach and the sensitivity-based Standardized Approach. The system also includes a VaR-based internal model to measure the Default Risk Charge for all instruments that are subject to issuer risk.

FRTB model risk governance

Regulators are demanding that banks put in place enterprise-wide monitoring of risk models, with transparent processes for daily validation. IBM OpenPages Model Risk Governance helps institutions address the risks from inaccurate or misused risk models. It features dynamic dashboards for clear oversight of model validation, with trading desk-level oversight on potential breaches per the back testing requirements and the P&L attribution test of the FRTB regulation.

Speaking as one
Now is the time for banks to make a bold move towards smarter analytics that will yield competitive advantages for years to come.

Global Survey - Forming FRTB action plans
Chartis surveyed over 100 banks worldwide to share their expectations on the business impacts of the Fundamental Review of the Trading Book (FRTB).

A point-of-view on Fundamental Review of the Trading Book
IBM discusses the challenges and opportunities facing banks as they prepare to implement FRTB and how data aggregation and reporting tools can aid compliance.

Customer success stories

Société Générale

Société Générale moves to a real-time pricing solution that helps traders identify risk-reducing trades.

Scotiabank

Scotiabank gains a unified credit risk solution for managing counterparty exposures and CVA in the front, middle and back office.