OneSumX Financial Risk Management
OneSumX Financial Risk Management’s modular financial analysis infrastructure is based on a single calculation engine and contract data model. This enables financial institutions to input information data, define model parameters and perform risk and profitability calculation measures in a consistent way across their different portfolios and accounts, providing a unified and transparent assessment in the level of risk that are exposed to and profitability they can benefit from.
Integrated data management
OneSumX Financial Risk Management is an event based contract centric integrated solution, such that data is collected once in order to measure all financial risks. The solution delivers full data management capabilities, validation and reconciliation as well as valuations and data enrichments.
Balance sheet management
As a contract centric integrated financial risk management solution, OneSumX generates expected and unexpected cash flows based on anticipated events over the lifetime of the contract. These events reflect the outlook for the macro economy, market risk factors, the strategy of the firm and the expected behaviour of its counterparties.
The results delivered allow firms to calculate their balance sheet value, income, capital, liquidity, leverage and provisioning levels now and at any point into the future.
Calculate, simulate and stress risk weighted assets and capital requirements for credit, counterparty credit, market and operational risks according to standardized and/or internal models. Reflect collateral allocation, netting and guarantees as per the Basel rules and compare this to an internal assessment using Economic Capital models.
In addition, calculate and manage concentration risk, expected loss, provisions, impairments, credit value adjustment and wrong way risk using analytical models or Monte Carlo simulation. Summix supports the calculation of all Basel CVA related measures including Current Exposure, Peak Exposure, Expected Exposure, Effective Expected Exposure, Expected Positive Exposure and Effective Expected Positive Exposure.
Calculate, simulate and stress the LCR, NSFR using contractual and behavioral cash flows assuming a liquidation analysis (living wills) and going concern analysis. In addition, calculate the marginal and cumulative liquidity gap and survival period of your financial institution.
Calculate, simulate and stress the leverage ratio reflecting the alternative treatment described by the regulators for off-balance sheet items and derivatives in comparison to the solvency calculations (among other items).
Calculate, simulate and stress net interest income (NII) reflecting the appropriate different instrument valuation methodologies such as discounted cash flows, CAPM, Black-Scholes, Trinomial trees etc. In addition, calculate and manage key risk indicators such as the sensitivities and the re-pricing gap.
Understand and analyze which sources consume and provide liquidity; and which trades/counterparties consume capital by calculating, stressing and simulating FTP rates, RORWA and RORAC
Budgeting and Planning
Evaluate the impact of alternative stress tests, scenarios and simulations across capital, liquidity, leverage and earnings simultaneously and then use the outputs to inform contingency plans and business strategy. Easily deﬁne and combine “stress models” into a single analysis across numerous factors .
OneSumX Financial Risk Management presents the results of this integrated analysis in an easy-to-use set of online analytical processing (OLAP) cubes that allow users to drag and drop dimensions to add insight into their analysis and create KRI dashboards. In addition, users can drill down to the underlying cash ﬂow of events for a single contract through a fully configurable and customer speciﬁc chart of account structure.
As such, institutions with multi-entity and cross border requirements can gain a single holistic view across the entire organization, identifying concentrations in credit risk or funding sources while simultaneously being able to analyze entity speciﬁc positions across capital, liquidity and earnings under alternative scenarios.
Risk & Proﬁtability
Following the ﬁnancial crisis and increased regulatory pressure, the market has seen signiﬁcant changes in risk management. Market volatility and a recognition that counterparty risk is very real have resulted in risk management systems starting to be viewed as strategic assets. Investments have been focused on enabling a holistic view of risk and providing timely access to information.
The comprehensive OneSumX solution suite can deliver to your organization an integrated solution for ﬁnancial risk management and reporting – integrated from a data, analytics and reporting perspective.
There are signiﬁcant beneﬁts from the use of a single set of analyses executed from the same data set, which uses one set of analytics to derive a unique projection of expected cash ﬂows per scenario, incorporating all relevant credit, market, behavioral, strategic and macro-economic events. This means institutions can measure risks more accurately and more consistently, thus informing strategy and contingency plans with greater insight.
- OneSumX Financial Risk Management enables the aggregation and dissection of risk across multiple asset classes and risk categories, allowing firms to run market risk, credit risk, liquidity risk, and business risk analyses across the enterprise.
- As well as historic and static analysis, OneSumX Financial Risk Management features dynamic analysis, which enables firms to evaluate potential decisions in a "what-if" environment and, as a consequence, make highly quantiﬁed strategic decisions.
- With OneSumX Financial Risk Management, many different scenarios can be run - taking into account risk factor correlations. Firms can run simulations for millions of instruments over thousands of scenarios to arrive at VaR, LaR and EaR at the same time.
- Users can combine multiple modules within OneSumX Financial Risk Management solution enabling maximum return on investment. Each module, enables customers to benefit from lower implementations costs as the same market data, scenarios and charts of accounts can be utilized. Each module provides value in its own right, the full solution increases overall ROI.
- The data management layer that is at the foundation of OneSumX for Finance, Risk & Reporting includes a rich, business-focused data model, allowing different departments to store granular business information with meaningful results specific to the unit. Common information is not duplicated but re-used and when information is sourced from a wide range of source systems, the reconciliation and enrichment tools put it together to create an aggregated view, delivering a single and trusted source of information.
- Although such a central data layer is a first step, a truly integrated risk and finance platform requires more. To support this, financial institutions using the OneSumX solution suite can leverage existing investment in high performance calculation engines such as Cash Flow Engine, PD & LGD calculators, Fair Value Calculators, forecasting and simulation engines. This not only simplifies the overall architecture, it also lowers the total cost of ownership (TCO) by removing redundant or superfluous software and enables firms to assess risks accurately from both an accounting and economic perspective
- OneSumX Financial Risk Management can also be used in conjunction with OneSumX Regulatory Reporting, providing reliable and consistent MIS/risk reports that provide a clear insight into the businesses’ profitability, performance, and risk analysis.
- OneSumX ALM
- OneSumX Stress Testing
- OneSumX FTP
- OneSumX Market Risk
- OneSumX Credit Scoring
- OneSumX Credit Risk
- OneSumX Financial Risk Management