A large, US based Asset Management / Private Wealth Management required an enterprise-wide credit risk solution that enabled real-time analysis across multiple geographies and source systems. The firm’s proprietary credit risk system could not easily handle the constant permutations of exposure reports / ad-hoc queries on the fly. This limitation was an inhibitor to the firm’s ability to view true exposure and conduct business. Management required a highly flexible credit risk solution that could keep pace with the constantly evolving permutations requested by the users.

CHALLENGESARMANTA SOLUTION
Integrate holding information from a large number of source trading-systems each with their own database across several geographiesArmanta Integrates with data in-place making the integration process simple and quick. This includes environments where the data is in many sources
Incorporate analytical data from a risk calculation engineArmanta enables simple incorporation of imbedded and external calculations within the Intelligence Cache™. In addition, all dependencies between data and calculations are managed automatically so updates to positions as well as market data and user edits are reflected across the enterprise immediately.
Manage network latency issues across geographies Armanta’s distributed, grid-computing environment allows for configurations where each of the Intelligence Cache™ processes can run in the geography where the data is located. By parallelizing the calculations, only higher-level aggregated values need to be sent over the WAN. This results in an environment where large-scale analyses can be performed across an entire set of enterprise information in real time.
Perform ad hoc risk queries across all enterprise informationWith the grid-capabilities of the Intelligence Cache, true ad hoc, business intelligence manipulations can be done in real time on enormous data sets.
Set and monitor risk limits Armanta’s live reporting features and sophisticated visualization capabilities enable views of information that make it straightforward to see across the enterprise and quickly identify exposures that are near or over limits
Set and modify netting rules – all exposures re-calculate in real-timeAs all calculations and aggregations in Armanta’s Intelligence Cache are defined by the customer, complex concepts like netting nodes and their associated aggregation rules are easy to define. In addition, the live nature of the calculations makes it possible to modify the netting rules and have the actual exposures re-calculate in real time.
Perform what-if analyses to understand the impact of netting modificationsThe combination of automated netting logic and the Armanta Sandbox makes possible a what-if environment where the impact of potential netting changes can be seen across any risk views.
Integrate with trading systems to show exposures vs limits to traders, and enable pre-trade calculationsLike all of Armanta’s components, Armanta’s Intelligence Cache is built on a completely open architecture that allows customers to integrate capabilities defined in the cache to be available to other systems

Benefits

  • Greatly reduced time to market and reduced implementation risk by leveraging integrated, non-proprietary technology components
  • Delivery of a highly customized solution to meet specific, complex credit risk requirements
  • Greatly reduced cost for initial deployment and future maintenance
  • High resiliency, scalability and flexibility to handle global growth and change in the future
  • Reduced technology maintenance overhead and reliance on outdated software
  • Confidence of knowing true exposure to any point of an entity hierarchy resulting in better business decisions