The need for an Integrated Approach to Financial Risk
Now, more than ever, the need for integrated risk management and closer collaboration between the trading desks and the middle office risk management functions has been highlighted, not only internally, but by external regulators globally.
Virtually all parties support an integrated approach to risk yet the current silo by silo method hinders banks from gaining an accurate picture internally and creates difficulties in meeting new legislative requirements.
The SOA Integration Challenge
During 2008, Integrella were approached by a major investment bank who were facing a number of challenges:
- Complexity of integrating numerous front and middle office systems across London, New York, Hong Kong, Johannesburg and Sao Paulo
- Traditional approaches to data integration consuming huge amounts of energy and resources
- Accurate and effective risk capture
- Fast access to risk numbers
- Aggressive project deadlines
Working with the investment bank, Integrella was able to provide them with a holistic picture of risk management by integrating IT systems to allow an enterprise-wide view of risk and convert data into actionable information.
- Ability to work alongside the business to deliver change fast
- Consultants that understand complex Over the Counter (OTC) and Exchange Traded Derivative (ETD) deals
- IT experts that know how to integrate systems and support lasting change
- Understanding of IT flexibility required to achieve product speed-to-market
- Integration of numerous front, middle and back office systems, including Murex GTS, Murex
- EQD, Front Arena, Spectrum and Asset Control
- An Enterprise Service Bus architecture that provides much needed flexibility and support
- Real-time integration for intra-day calculation of risk
“The project went live on time and within budget, which was an achievement considering the strict timeframe to deliver by the end of 2008. Without the Integrella contribution it is questionable whether thiswould have been the case”
— Credit Risk Project Manager