Case Study: ABSA

ABSA Corporate & Investment Banking, member of Barclays, partners with IBM to create a single view of risk across trading and banking

ABSA Corporate & Investment Banking integrated a platform that can present a single, accurate view of counterparty credit risk, and meet the needs of the business, its clients, and its regulators in South Africa. As a result, the time taken to produce a single view of risk was reduced by 85 percent.

Last year, when concerns arose about one of our large financial counterparties, it gave us a perfect opportunity to test our new solution. With spreadsheet-based analysis, it took seven days to calculate our total exposure to that particular counterparty. With IBM Algo Credit Manager, we got to the same answer in two minutes.

—Dale Vice, Head of Change, Barclays Africa

Overview

Make risk management a priority in this evolving financial industry by improving the quality and speed of risk reporting, insight, and decision-making.

How it works

By applying data modeling, predictive analytics, decision support tools, and comprehensive reporting you can better monitor, measure, and manage market and credit risk exposure across multiple silos. This solution allows you to:

  • Leverage the depth and breadth of integrated IBM solutions needed to address Basel FRTB—representing a profound change in how banks measure market risk within the trading book.
  • Measure and manage the market and credit risks of your financial institution across all asset classes, product types and industry sectors.
  • Enable a predictive approach to risk modeling in a safe and controlled environment to quantify, model, integrate, test and evaluate scenarios at an aggregated level of data.
  • Integrate risk and finance process for business modeling, planning and alignment between strategy and execution.
  • Enable your enterprise to exploit its understanding of its risk profile to maximize revenue and profit.
  • Simplify and streamline the entire risk data process using structured and unstructured data.

The benefits

IBM offers an integrated set of risk solutions that allow banks to calculate, measure, monitor, manage and report on their financial risks. By adopting this enterprise approach banks can achieve compliance and maximize profitability.

Additional resources

Rising to the FRTB challenge
Address capability gaps and adopt strategies to accelerate FRTB implementation.

Banking breakthrough: Big data-powered next generation asset liability management and liquidity risk management
See how a large Canadian bank implemented a big data approach to stress testing.

A complete perspective – Managing and monitoring a single view of concentration risk
Banking standards for monitoring and controlling large exposures have uncovered a need that can streamline credit risk management solutions.

Get started

Speak with an IBM Financial Services expert.

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