RiskTech100® 2015 - IBM Highlights

IBM’s risk offerings are an integral part of IBM Analytics, which aligns IBM’s capabilities and expertise to help its clients transform their industries and professions with data. IBM Analytics has in excess of 15,000 consultants, including almost 400 researchers, with 9 dedicated analytics solution centers across the world.

IBM Risk Analytics is a leader in enterprise risk solutions, dedicated to helping financial institutions and corporates understand and manage risk.

IBM’s suite of solutions combines risk management software, services, advice, and content to help financial institutions and corporates gain an integrated, enterprise-wide view of risk, meet regulatory requirements, and make better business decisions. IBM provides analytics engines and risk-aware business application solutions to meet the need to measure risk and to better manage an enterprise through the use of risk intelligence.

IBM has continued to expand its portfolio of acquisitions, further integrating the additions of OpenPages (acquired in 2010) and Algorithmics (acquired in 2011). In addition, IBM has acquired Trusteer and i2, facilitating cyber security, AML and regulatory measures, and SoftLayer, to facilitate expansion of its cloud solution. Many of the risk solutions now offer a choice of deployment models from on-premise to on-cloud and hybrid options in between to suit clients’ individual requirements and priorities.

During 2013 it launched the Integrated Risk Platform, a risk reporting platform enabling a single aggregated view of risk results, delivering enhanced risk-based decision making. Cognos’ capabilities have been integrated into the Algo One platform products facilitating performance risk-and-return analytics in the capital markets decision making solution. Full risk simulations, including pre-deal, what-if risk profiles, are calculated in real or near-real time. An initiative entitled ‘Right Time’ integrates high performance risk and return analytics in the capital markets decision making process, where a reactive post-trade perspective is enhanced with a pro-active pre-trade capability. IBM is enhancing its wealth management and GRC solutions using the natural language and cognitive capabilities of IBM Watson.

IBM Risk Analytics continues to expand in emerging geographical markets such as Asia-Pacific while continuing to advance its solutions for the capital markets and insurance industry and enhancing its on-cloud and content strategy. In addition consultancy ‘Centers of Competence’ have been established. These represent an extension of the ongoing strategy to expand the analytics and software services. The products include:

  • Credit lifecycle management – defining and managing states of the credit granting and monitoring process, from credit approvals and renewals to compliance, collateral and documentation management, incorporating credit exposures across the enterprise, and calculating and aggregating simulation-based exposures.
  • Integrated market and credit risk – offers real-time risk analytics capability, tying market and credit functions in with exposure management, based on Algo One and IBM’s RTCE (real time credit engine) for front-office pre-trade risk-based decision making.
  • Market risk – providing a scalable integrated risk platform enabling the measurement, control and management of multiple asset classes and risk factors.
  • Stress testing capabilities across the portfolio – from data integrity, to scenario generation to analytics and reporting, combined with enterprise model risk governance provide an integrated modeling platform for forecasting and stress-testing multi-risk capital and income over a range of scenarios for interactive business-planning.
  • Operational risk and GRC – a comprehensive eGRC platform and an integrated approach to the identification, management and measurement of operational risk, including a quantitative loss database, scalable, workflow-driven processes, and a rapid deployment option based on industry best practices and IBM domain expertise.
  • Actuarial and financial modeling – providing an insurance modeling system to deliver risk and other analytics to clients to support reliable decision making, including specific solutions for Solvency II.
  • ALM and Liquidity risk – utilizing a flexible, scenario-based framework including simulation-based solutions to handle sophisticated products, address regulatory requirements, and support advanced stochastic calculations.