SAS repeats Basel 3 RiskTech Quadrant category leader rank: Chartis Research
Report praises SAS® Risk Management for Banking, high-performance analytics
SAS again claimed a category leader spot in the Chartis RiskTech QuadrantTM for Basel 3 . The business analytics leader was lauded for "completeness of offering" and "market-share potential."
Chartis reviewed risk offerings, including SAS® High-Performance Risk and SAS Risk Management for Banking, which address credit risk, market risk, asset liability management and firmwide risk. This report covers technologies required for Basel 3 compliance and adaptation, including data models, flexible and real-time analytics, capital calculation engines, and specific technology support for risk and finance integration, liquidity risk and counterparty credit risk.
"A Basel 3 technology environment needs to be flexible enough to adopt new rules and calculation standards and components," said Peyman Mestchian, Managing Partner at Chartis Research. "It needs to be part of an integrated risk management architecture incorporating multiple market risk, credit risk and liquidity functionalities while providing the required stress testing, governance, workflow and transparency capabilities at an enterprise level."
Per Chartis, today's complex regulatory landscape demands high-performance solutions for risk management and compliance. SAS High-Performance Risk uses an in-memory grid that reduces enrichment time for portfolio and market data, and includes event-stream processing for real-time analytics. This is critical for stress testing and cash flow computation, when users must review and manage large portfolios for different types of risk analysis. The liquidity risk management functionality – which supports Dodd-Frank as well as Basel 3 – includes cash-flow, liquidity-at-risk, and risk-adjusted spread measurements.
Consistent with Chartis' assertion that a risk analytics environment needs to be an "open box," SAS builds components on a common technology that helps meet and exceed regulations. Further, increasing regulator questions about risk measures and business profiles require banks to tackle areas such as stress testing, where traditional data storage and reporting fails. SAS' firmwide data model supports a range of risk measurements and capital management that cover market risk, credit risk, and ALM data. SAS also handles market risk capital revisions, credit risk, counterparty credit risk, CVA, wrong-way risk RWA calculations, and leverage ratio.
The Chartis report calls high-performance analytics and visualization necessary, not only to understand risk data and accommodate regulatory reporting developments, but also to support business goals. The most sophisticated risk engine in the world provides little value if users cannot view global exposures in many ways. Both SAS Data Management and SAS Visual Analytics help firms to cost-effectively meet demand in areas of increasing interest to regulators, such as liquidation strategy and stress testing. This is important so banks can visualize risk data when regulators are interested in more than standard regulatory reporting.
"Meeting the new rules for capital adequacy will force many firms to update their risk technology infrastructure, spurring investment in data and analytics to cover liquidity requirements," said David Rogers, SAS Global Product Marketing Manager for Risk.
Read the Chartis report highlights.
Chartis is the leading provider of research and analysis on the global market for risk technology. Its goal is to support enterprises as they drive business performance through better risk management, corporate governance and compliance. Chartis helps clients make informed technology and business decisions by providing in-depth analysis and actionable advice on virtually all aspects of risk technology.
RiskTech QuadrantTM is a registered trade mark of Chartis Research limited.
Chartis Research is authorized and regulated by the Financial Conduct Authority (FCA) for providing investment advice - (chartis-research.com).
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 70,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®.