Capital allocation and management

While capital allocation and management have always been core banking functions, regulatory requirements continue to grow with minimum methodology standards and increased breadth of regulatory supervision.
In many cases, these tighter requirements necessitate a fundamental restructuring and expansion of a financial institution's risk measurement and management capabilities.

Improved capital allocation and management and heightened market discipline must become a part of "business as usual." However, many banks lack a unified framework and associated systems that can support the complexity and transparency required, let alone take them beyond compliance by extending good risk management practices as a way to achieve competitive advantage. SAS can help.

How SAS can help

SAS delivers software and services to help you:

• Implement a self-documenting risk data infrastructure that automates the entire data management process– from extracting data from any source regardless of format, to finding and fixing bad data, to storing data in a repository specifically designed for Basel II analysis and reporting.
• Adopt a consistent credit risk methodology– standardized, IRB-F, IRB-A or mixed– across all portfolios.
• Create a consolidated, groupwide view of risk, regardless of language, currency, aggregation hierarchy or local regulatory interpretations.
• Employ interactive regulatory and management reporting to get information to whoever needs it, in the form and level of detail they require.
• Provide transparency and traceability across the entire process so you can track down anomalies and answer regulator inquiries on demand.

How SAS is different

• Our single, integrated risk platform supports the entire capital allocation and management process – from source data extraction all the way through to analysis and reporting.
• You can use the same SAS solution for both regulatory and advanced, nonregulatory measures – such as economic capital and risk-adjusted pricing – as well as fully integrate the solution into other areas, such as financial and marketing systems.
• SAS handles both regulatory and nonregulatory capital allocation and management across multiple jurisdictions, with built-in methodologies and preconfigured capabilities, including:
  • A data profiler that identifies and fixes data quality issues automatically.
  • Hundreds of predefined data transformation routines.
    A data repository that includes the most comprehensive data dictionary available.
  • Support for multiple minimum capital requirements approaches – standardized, IRB-F, IRB-A, mixed.
  • Flexible reporting capabilities and complete transparency, so even non-risk experts can view, validate and audit every step of the analysis quickly and easily.