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Basel II solution design from IBM
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| Capitalize on the advantages of Basel II
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Reduced capital reserve requirements. Increased profitability. Enhanced market share. Viewed as an investment, Basel II has the potential to help banks and financial markets firms position themselves for sustained growth over the long term. Unfortunately, with the global industry cost of compliance estimated at close to US$180B, many of these organizations have been slow to react. IBM Basel II solution design helps you devise and implement the best plan for your institution.
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| IBM: the right people, tools and technology
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Basel II defines a long and complex list of new regulations. For many financial services firms, finding an experienced business partner to help determine the best, long-term strategy is a challenge. IBM offers:
- Extensive financial services expertise—we have amassed over 100 person years of research and development of solutions for financial institutions around the world.
- Strong Basel II experience—IBM has worked with over 80 financial institutions to create a full or partial Basel II solution design.
- A solution model that’s been refined through 50 Basel II engagements in 2003 and 2004.
- Over 250 IBM risk and compliance experts who have specialized knowledge of the IT issues associated with Basel II implementations.
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| Your best plan for Basel II compliance
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Reducing risk makes your organization more competitive. Basel II supports this premise by promoting a sound financial system and helping align regulatory capital requirements more closely with underlying risk. In fact, a well-constructed Basel II solution can help you:
- Increase shareholder value.
- Modernize and improve risk management strategies.
- Maintain and enhance your credit rating.
- Lower operating costs.
- Identify potentially dangerous portfolio positions and other risk sources.
Our solution is designed to help you capitalize on the opportunities provided by Basel II to realize benefits in the short and long term. It leverages the experience of dedicated risk and compliance professionals, best-in-class technology and proven processes to help you:
- Assess your existing risk management systems and processes.
- Design a best-practice plan, with timeline, for Basel II compliance.
- Make new Basel II regulations available to your entire organization.
- Streamline the collection, consolidation and extraction of detailed data from all your existing technology systems.
- Create and manage your Basel II data report from concept to completion with a basic template and a tailored, business process workflow.
- Manage credit risk by streamlining the lending process into an automated workflow.
- Rapidly deliver ongoing risk reports and analysis with “quick start” reporting templates.
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| Customizable solutions for every institution
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IBM has worked with a number of global financial institutions, like Lloyds TSB, in the design and implementation of their Basel II strategy. The objective of the [Lloyds TSB] engagement was to support…the development of a feasibility analysis of Basel II for credit and operational risk. The engagement also included the delivery of a business case and the design of a business and technical architecture for Basel II at a group level.
- Implications for all systems within the Lloyds TSB group were assessed, including, but not limited to, warehouse and risk systems.
- Additional business benefits in terms of system rationalization projects were identified, and provided a single customer view allowing for enhanced capability within credit risk ratings.
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| Delivering value over the long term
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IBM Basel II solution design supports a sustained return on your investment with:
- A solution model that identifies ‘quick wins’—actions that can be immediately implemented to generate bottom-line value.
- Predefined Basel II requirements that facilitate faster regulatory compliance.
- Tools and technology to significantly reduce the time it takes to identify and reconcile data discrepancies, saving money and lowering audit risk.
- Strategies to align your Basel II plan with other related projects, reducing the overall cost of compliance programs.
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Questions about this solution? Contact an IBM Financial Services specialist.
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