IBM Vendor Highlights Report

IBM's risk offerings are spearheaded by its Business Analytics and Optimization practice. The practice has nearly 8,000 consultants, including almost 300 researchers, based in a network of analytics solution centres all over the world.

In the past four years, the computing giant has made several acquisitions with a view to enhancing its risk management consulting services and adding to its Cognos software offering. Recent notable acquisitions include OpenPages and Algorithmics.

OpenPages, which was acquired by IBM in October 2010, offers a single system that helps companies identify and manage risk and compliance activities across the enterprise, thus promoting integrated risk management solutions. It allows them to develop a comprehensive compliance and risk management strategy across a range of domains including operational risk, financial controls management, IT risk, compliance and internal audits. The acquisition brought to IBM 200 clients across various industries including companies such as Allianz, Duke Energy, Barclays and SunTrust.

Algorithmics became an IBM company in October 2011. It provides solutions for market, credit and operational risk, as well as collateral and capital management. Users of its software include 25 of the world's top 30 banks and over two thirds of the CRO Forum of leading insurers.

Its products include:

  • Market Risk solutions - providing a scalable integrated risk platform to measure, manage and control capital market exposures across asset and liability functions
  • Credit and Capital solutions - delivering real-time access to accurate, integrated credit data, enabling regulatory compliance, enhanced decision making and improved financial performance
  • Collateral and management solutions - providing timely access to accurate collateral related data, reducing operational risk and increasing business opportunities
  • Operational risk solutions - providing an integrated approach to the identification, management and measurement of operational risk in support of GRC programs
  • ALM and Liquidity risk - providing a simulation based framework to handle sophisticated products, address regulatory requirements and support advanced calculations such as stochastic scenarios
  • Actuarial modeling - providing key decision makers of insurance firms with critical business information for managing risk, meeting regulatory requirements and protecting shareholder value.

Both acquisitions have broadened IBM's advanced analytics capabilities for the financial services industry and continue its long term strategy to expand its business analytics and optimization software services.