Our evaluation and investment decision supporting tools are specialized in the pricing of instruments on the money market, capital market and derivatives market. Traded and OTC instruments can be defined, constructed, and graphically represented as capital and interest cash flows for a future time period. The construction of non-standard complex instruments is enabled using expressions, that are based on a specific language, unifying the price calculation.
Essential features of our pricing models:
The modules of our software systems – Risk Framework and Risk Engine – facilitate the management of bank portfolios, retail and corporate banking services (deposits, loans, accounts, etc.), as well as risk mitigation. We assist banks in using internal and regulatory models (Basel III requirement) to assess the credit standing of private or corporate counterparties. Our models for rating estimation, scoring, and loan allowance use balance sheet data, soft factors, country specific factors, and KO-criteria, to calculate scores and determine ratings within master rating scales. Solutions for portfolio structuring and asset allocation build the basis for Cash Flow and Interest Income Analysis (GAB Analysis and FTP). Aggregations and scenarios are included in the Asset Liability Management (ALM). The risk management tools support market risk factors (for ex. historical time series, correlation matrixes, and volatilities) as well as credit risk factors (for ex. probabilities of default - PDs, migration matrixes from rating agencies, such as Standard & Poor, Moodys or Fitch, seniority classes), including management and assessment of collaterals. In addition to calculating market and credit risk of portfolios and sub portfolios, banks' operational risk regulatory capital requirements can be evaluated using Basel III recommendations - Basic Indicator Approach (BIA), Standardized Approach (STA), and Advanced Measurement Approach (AMA). Most models can work with non-normal distributions.
We provide software solutions to support professional traders, investment advisors, or fund managers in their investment consulting activities. Module Investment Consulting offers the following features:
Real Estate management tools are intended for family offices or other similar institutions, such as individual or institutional investors. In this way, facilities of Risk Framework are inherited, enabling:
Activities of today’s insurance institutions are not only directed at offering attractive insurance instruments, but also at effective insurance risk management. Since 2012, the EIOPA advices insurance institutions in the EU to apply Solvency II Capital Requirements, that decrease reservations for risk capital, in order to cover for unfavorable movements of market conditions, insurance environments or counterparty debt standings. Solvency II is a fundamental review of the solvency and risk management standards for the European insurance industry, aiming at strengthening the prudential regulation of the insurance sector.
Our software solutions support insurance institutions in the following directions:
Our insurance instruments are created in the form of standardized positions in Risk Framework, so hierarchical portfolios of insurance contracts (police) can be constructed and various portfolio analysis performed. The calculation of capital requirements of insurance portfolios is based on regulatory scenarios for Market, Default and Life Underwriting risk, that are evaluated using the pricing models of insurance contracts.
Our fund management solutions combine software tools and consulting services for portfolio management and reporting, performance measurement and benchmarking, cash flow analysis and forecasting, including:
We provide fund managers with software implementations of regulatory and internal models for different risk type valuations, such as.:
In order to ensure reliable risk and portfolio management results, the following organizational and administrative capabilities are supported:
We also integrate client oriented subsystems, according to our clients’ demands, such as notifications (E-mail) and client reports, alerts for limit violations (pop-up windows, sounds), as well as compliance checks for specific investment goals.