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Like other financial institutions, you're exposed to everyday changes in local and global markets. Fluctuations in market interest rates have a direct impact on the returns generated from banking and investment books.
How can you effectively:
- Measure your exposure to different sources and levels of risk?
- Determine limit compliance?
- Develop risk mitigation strategies?
- Allocate regulatory capital?
- Evaluate returns?
Be versatile enough to meet all needs
Underpinned by the research of Professor Robert Jarrow and Dr. Donald van Deventer, Market Risk Solutions from Fiserv measure the potential credit exposure across all asset classes, ranging from banking book products such as mortgages, consumer loans and credit cards to structured products such as CDOs and complex option-based derivatives. This sophisticated solution is also used for modeling the default risk of counterparties and customers, whether you’re a small community bank or a global financial giant.
Use a proven solution to make confident decisions
Our Market Risk Solutions contain an integrated stress testing and scenario testing framework which allows correlations between risk factors to be taken into consideration and the evolution of risk factors modeled through the economic cycle.
Benefit from a fully integrated risk solution
Combine market risk, credit risk and asset/liability management capabilities to help you measure market and other risks and to comply with regulatory requirements, including Basel II. The integration allows correlations between risk factors to be taken into consideration and the evolution of risk factors modeled through the economic cycle.
Additional benefits include:
- Reduced form and structural models
- Implied PD models (risky bonds and credit default swaps)
- Logistic regression PD models with user-defined variables
- Collateral and hedge relationships
- Credit VAR
- Credit-adjusted income simulation
- Expected loss distributions and analysis
- Macro risk factor analysis
- Economic capital modeling
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